First American Financial Corp. Files Q2 2024 10-Q

TL;DR

**FAF Q2 10-Q is IN! Financials look solid, check the details on investments and title segment.**

AI Summary

First American Financial Corp. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and positions, including various investment securities and their fair value inputs. Key segments like Title Insurance and Services are highlighted, with specific dates and financial reporting periods referenced throughout.

Why It Matters

This filing provides investors and analysts with a detailed look into First American's financial health and operational performance for the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating any immediate or significant new risks.

Key Numbers

• Q2 2024 — Reporting Period (Period covered by the 10-Q filing)
• June 30, 2024 — As of Date (Date for which financial position is reported)
• July 26, 2024 — Filing Date (Date the report was submitted to the SEC)

Key Players & Entities

• First American Financial Corp. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240726 (date) — Filing date
• Title Insurance (industry) — Primary business segment

FAQ

Key Financial Figures

• $0.00001 — nge on which registered Common stock, $0.00001 par value FAF New York Stock Exchan

Filing Documents

• faf-20240630.htm (10-Q) — 3688KB
• faf-ex31_a.htm (EX-31.(A)) — 14KB
• faf-ex31_b.htm (EX-31.(B)) — 14KB
• faf-ex32_a.htm (EX-32.(A)) — 7KB
• faf-ex32_b.htm (EX-32.(B)) — 8KB
• 0000950170-24-086667.txt ( ) — 15532KB
• faf-20240630.xsd (EX-101.SCH) — 1428KB
• faf-20240630_htm.xml (XML) — 4000KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) A. Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 5 B. Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 6 C. Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 7 D. Condensed Consolidated Statements of Stockholders' Equity for each of the quarters within the six months ended June 30, 2024 and 2023 8 E. Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 10 F. Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38

: OTHER INFORMATION

PART II: OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49 Item 3. Defaults Upon Senior Securities 49 Item 4. Mine Safety Disclosures 49 Item 5. Other Information 49 Item 6. Exhibits 50 2 THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. THESE FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY THE FACT THAT THEY DO NOT RELATE STRICTLY TO HISTORICAL OR CURRENT FACTS AND MAY CONTAIN THE WORDS "BELIEVE," "ANTICIPATE," "EXPECT," "INTEND," "PLAN," "PREDICT," "ESTIMATE," "PROJECT," "WILL BE," "WILL CONTINUE," "WILL LIKELY RESULT," OR OTHER SIMILAR WORDS AND PHRASES OR FUTURE OR CONDITIONAL VERBS SUCH AS "WILL," "MAY," "MIGHT," "SHOULD," "WOULD," OR "COULD." THESE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, STATEMENTS REGARDING FUTURE OPERATIONS, PERFORMANCE, FINANCIAL CONDITION, PROSPECTS, PLANS AND STRATEGIES. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND ASSUMPTIONS THAT MAY PROVE TO BE INCORRECT. RISKS AND UNCERTAINTIES EXIST THAT MAY CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN THESE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE THE ANTICIPATED RESULTS TO DIFFER FROM THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION: INTEREST RATE FLUCTUATIONS; CHANGES IN CONDITIONS OF THE REAL ESTATE MARKETS; VOLATILITY IN THE CAPITAL MARKETS; UNFAVORABLE ECONOMIC CONDITIONS; IMPAIRMENTS IN THE COMPANY'S GOODWILL OR OTHER INTANGIBLE ASSETS; FAILURES AT FINANCIAL INSTITUTIONS WHERE THE COMPANY DEPOSITS FUNDS; REGULATORY OVERSIGHT AND CHANGES IN APPLICABLE LAWS AND GOVERNMENT REGULATIONS, INCLUDING PRIVACY AND DATA PROTECTION LAWS; HEIGHTENED SCRUTINY BY LEGISLATORS AND REGULATORS OF THE COMPANY'S TITLE INSURANCE AND SERVICES SEGMENT AND CERTAIN OTHER OF THE CO

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financi al Statements

Item 1. Financi al Statements. FIRST AMERICAN FINANCIAL CORPORATION AND SUBSIDIARY COMPANIES Condensed Consolida ted Balance Sheets (in millions, except par values) (unaudited) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 2,048.6 $ 3,605.3 Accounts and accrued income receivable, less allowance for credit losses of $ 21.4 and $ 21.8 403.7 509.4 Income taxes receivable 47.7 75.7 Investments: Deposits with banks 56.4 55.8 Debt securities (amortized cost of $ 7,892.7 and $ 7,895.2 ; pledged of $ 94.7 and $ 107.0 ) 7,080.7 7,157.5 Equity securities 710.1 735.6 7,847.2 7,948.9 Secured financings receivable 741.0 636.5 Property and equipment, net 777.4 749.6 Operating lease assets 219.5 229.3 Title plants and other indexes 663.9 652.4 Deferred income taxes 50.1 50.1 Goodwill 1,808.3 1,807.5 Other intangible assets, net 137.4 153.8 Other assets 412.5 384.3 $ 15,157.3 $ 16,802.8 Liabilities and Equity Deposits $ 5,616.1 $ 7,308.0 Accounts payable and accrued liabilities 907.0 879.5 Deferred revenue 190.5 196.8 Reserve for known and incurred but not reported claims 1,252.2 1,282.4 Income taxes payable 17.1 15.9 Deferred income taxes 63.6 63.6 Operating lease liabilities 237.0 246.6 Secured financings payable 641.5 553.3 Notes and contracts payable 1,399.7 1,393.9 10,324.7 11,940.0 Commitments and contingencies (Note 16) Stockholders' equity: Preferred stock, $ 0.00001 par value; Authorized— 0.5 shares; Outstanding— none — — Common stock, $ 0.00001 par value; Authorized— 300.0 shares; Outstanding— 103.1 shares — — Additional paid-in capital 1,781.4 1,793.3 Retained earnings 3,761.9 3,710.6 Accumulated other comprehensive loss ( 729.7 ) ( 655.8 ) Total stockholders' equity 4,813.6 4,848.1 Noncontrolling interests 19.0 14.7

View Full Filing

View this 10-Q filing on SEC EDGAR