First American Financial Corp. Q3 2024 10-Q Filing
Ticker: FAF · Form: 10-Q · Filed: Oct 25, 2024 · CIK: 1472787
Sentiment: neutral
Topics: 10-Q, financials, title-insurance
TL;DR
FAF 10-Q filed: Q3 2024 financials out, showing common stock, debt ratings, and investment details.
AI Summary
First American Financial Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and positions, including information on common stock, noncontrolling interests, and various investment securities. It also references credit ratings such as BBB+ to BBB- and A- or higher for government and agency debt.
Why It Matters
This filing provides investors and analysts with a detailed look into First American Financial Corp.'s financial health and operational performance for the third quarter of 2024.
Risk Assessment
Risk Level: medium — The filing contains detailed financial data, including credit ratings and fair value disclosures, which are crucial for assessing the company's financial stability and investment risks.
Key Numbers
- 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
- 2024-07-01 — Quarter Start Date (Marks the beginning of the third fiscal quarter of 2024.)
- 2024-06-30 — Previous Period End Date (Represents the end of the second fiscal quarter, used for comparative analysis.)
Key Players & Entities
- First American Financial Corp. (company) — Filer of the 10-Q
- 2024-09-30 (date) — End of the reporting period
- BBB+ to BBB- (credit_rating) — External credit rating for certain debt securities
- A- or higher (credit_rating) — External credit rating for US Government Agencies Debt Securities
FAQ
What is the reporting period for this 10-Q filing?
The reporting period for this 10-Q filing is the quarter ended September 30, 2024.
What types of debt securities are mentioned with specific credit ratings?
The filing mentions 'Foreign Government Debt Securities' with ratings from BBB+ to BBB- and 'US Government Agencies Debt Securities' with ratings of A- or higher.
What is the company's primary business as indicated by the SIC code?
The Standard Industrial Classification (SIC) code is 6361, which corresponds to Title Insurance.
What are some of the financial statement line items or disclosures mentioned?
The filing references items such as 'Noncontrolling Interest', 'Common Stock', 'Accumulated Other Comprehensive Income', and 'Fair Value Inputs Level 3'.
When was this 10-Q form filed with the SEC?
This 10-Q form was filed on October 25, 2024.
Filing Stats: 4,419 words · 18 min read · ~15 pages · Grade level 7.1 · Accepted 2024-10-24 18:16:01
Key Financial Figures
- $0.00001 — nge on which registered Common stock, $0.00001 par value FAF New York Stock Exchan
Filing Documents
- faf-20240930.htm (10-Q) — 3908KB
- faf-ex31_a.htm (EX-31.(A)) — 14KB
- faf-ex31_b.htm (EX-31.(B)) — 14KB
- faf-ex32_a.htm (EX-32.(A)) — 8KB
- faf-ex32_b.htm (EX-32.(B)) — 8KB
- 0000950170-24-117138.txt ( ) — 15910KB
- faf-20240930.xsd (EX-101.SCH) — 1406KB
- faf-20240930_htm.xml (XML) — 4082KB
: FINANCIAL INFORMATION
PART I: FINANCIAL INFORMATION Item 1.
Financial Statements (unaudited)
Financial Statements (unaudited) A. Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 5 B. Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 6 C. Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 7 D. Condensed Consolidated Statements of Stockholders' Equity for each of the quarters within the nine months ended September 30, 2024 and 2023 8 E. Condensed Consolidated Statements of Cash Flows for the nine months ended September 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) September 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 2,953.4 $ 3,605.3 Accounts and accrued income receivable, less allowance for credit losses of $ 22.8 and $ 21.8 390.8 509.4 Income taxes receivable 54.5 75.7 Investments: Deposits with banks 55.4 55.8 Debt securities (amortized cost of $ 7,256.7 and $ 7,895.2 ; pledged of $ 98.5 and $ 107.0 ) 7,015.3 7,157.5 Equity securities 725.0 735.6 7,795.7 7,948.9 Secured financings receivable 984.0 636.5 Property and equipment, net 786.1 749.6 Operating lease assets 227.0 229.3 Title plants and other indexes 668.5 652.4 Deferred income taxes 50.1 50.1 Goodwill 1,810.7 1,807.5 Other intangible assets, net 134.6 153.8 Other assets 711.0 384.3 $ 16,566.4 $ 16,802.8 Liabilities and Equity Deposits $ 5,962.0 $ 7,308.0 Accounts payable and accrued liabilities 897.2 879.5 Deferred revenue 210.0 196.8 Reserve for known and incurred but not reported claims 1,230.0 1,282.4 Income taxes payable 124.9 15.9 Deferred income taxes 63.6 63.6 Operating lease liabilities 242.2 246.6 Secured financings payable 878.2 553.3 Notes and contracts payable 1,847.7 1,393.9 11,455.8 11,940.0 Commitments and contingencies (Note 17) 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— 103.0 shares and 103.1 shares — — Additional paid-in capital 1,781.3 1,793.3 Retained earnings 3,601.4 3,710.6 Accumulated other comprehensive loss ( 290.5 ) ( 655.8 ) Total stockholders' equity 5,092.2 4,848.1 Noncontrolling int