$FAF

First American Financial Corp

CIK:0001472787|SEC Filings

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Direct premiums and escrow fees	$ 794.1	$ 704.2	$ 1,454.3	$ 1,265.3
Agent premiums	819.7	716.5	1,579.1	1,371.1
Information and other	307.8	270.1	582.9	512.3
Net investment income	183.7	160.2	336.1	295.4
Net investment gains (losses) (realized losses of $(1.5), $(5.4), $(2.8), $(6.9))	12.0	(9.7)	2.9	(20.5)
Total revenues	2,117.3	1,841.3	3,955.3	3,423.6
Expenses
Personnel costs	614.3	571.1	1,182.5	1,077.8
Premiums retained by agents	658.6	573.5	1,260.8	1,099.0
Other operating expenses	352.1	309.4	662.5	587.7
Provision for policy losses and other claims	87.3	81.9	165.1	152.0
Depreciation and amortization	53.6	53.0	108.2	105.5
Premium taxes	21.8	19.2	42.9	36.6
Interest	45.7	38.0	87.6	73.2
Total expenses	1,833.4	1,646.1	3,509.6	3,131.8
Income before income taxes	283.9	195.2	445.7	291.8
Income taxes	64.8	48.1	101.8	69.9
Net income	219.1	147.1	343.9	221.9
Less: Net income attributable to noncontrolling interests	0.6	1.0	0.3	1.6
Net income attributable to the Company	$ 218.5	$ 146.1	$ 343.6	$ 220.3
Net income per share attributable to the Company's stockholders (Note 10):
Basic	$ 2.13	$ 1.41	$ 3.34	$ 2.12
Diluted	2.12	1.41	3.33	2.12
Cash dividends per share	$ 0.55	$ 0.54	$ 1.1	$ 1.08
Weighted-average common shares outstanding (Note 10):
Basic	102.6	103.5	102.8	103.7
Diluted	103.0	103.8	103.1	104.0

Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 343.9	$ 221.9
Adjustments to reconcile net income to cash provided by operating activities:
Provision for policy losses and other claims	165.1	152.0
Depreciation and amortization	108.2	105.5
Amortization of premiums and accretion of discounts on debt securities, net	(27.1)	(20.9)
Net investment (gains) losses	(2.9)	20.5
Share-based compensation	40.4	47.8
Equity in earnings of affiliates, net	(6.2)	(5.1)
Dividends from equity method investments	6.8	3.4
Changes in assets and liabilities excluding effects of acquisitions and noncash transactions:
Claims paid, including assets acquired, net of recoveries	(180.3)	(164.5)
Net change in income tax accounts	67.8	62.7
Increase in accounts and accrued income receivable	(17.8)	(34.7)
Decrease in accounts payable and accrued liabilities	(113.0)	(61.4)
Decrease in deferred revenue	(5.7)	(6.5)
Other, net	(17.0)	(11.7)
Cash provided by operating activities	362.2	309.0
Cash flows from investing activities:
Acquisitions/dispositions, net of cash acquired/divested	(0.2)	(3.9)
Net (increase) decrease in deposits with banks	(26.7)	6.4
Purchases of debt securities	(2,296.5)	(1,393.7)
Proceeds from sales of debt securities	543.7	507.0
Proceeds from maturities of debt securities	377.8	312.3
Purchases of equity securities	(34.6)	(19.4)
Proceeds from sales of equity securities	29.2	17.3
Net change in other investments	(10.3)	(6.5)
Advances under secured financing agreements	(29,583.2)	(18,613.4)
Collections of secured financings receivable	29,417.1	18,328.3
Capital expenditures	(77.5)	(94.1)
Proceeds from sales of property and equipment	0.4	0.1
Proceeds from insurance settlement	0.0	1.9
Cash used for investing activities	(1,660.8)	(957.7)
Cash flows from financing activities:
Net change in deposits	2,585.2	911.6
Borrowings under secured financing agreements	28,599.5	18,071.3
Repayments of secured financings payable	(28,469.6)	(17,831.3)
Repayments of other notes and contracts payable	(1.1)	(1.3)
Net activity related to noncontrolling interests	(2.1)	(1.7)
Net payments in connection with share-based compensation	(5.1)	(1.1)
Repurchases of Company shares	(54.0)	(88.7)
Payments of cash dividends	(112.3)	(111.0)
Cash provided by financing activities	2,540.5	947.8
Effect of exchange rate changes on cash	(4.4)	14.0
Net increase in cash and cash equivalents	1,237.5	313.1
Cash and cash equivalents—Beginning of period	1,387.3	1,718.1
Cash and cash equivalents—End of period	2,624.8	2,031.2
Supplemental information:
Interest	84.6	71.6
Premium taxes	56.2	42.6
Income taxes paid	34.5	21.5
Income tax refunds	$ (0.5)	$ (14.3)

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 2,624.8	$ 1,387.3
Accounts and accrued income receivable, less allowance for credit losses of $25.5 and $23.9	447.9	432.6
Income taxes receivable	35.4	65.0
Investments:
Deposits with banks	103.3	78.5
Debt securities (amortized cost of $10,062.0 and $8,656.7; pledged of $162.2 and $170.3)	9,774.7	8,466.7
Equity securities	855.7	849.1
Investments, Total	10,733.7	9,394.3
Secured financings receivable	1,152.2	986.1
Property and equipment, net	662.6	682.3
Operating lease assets	195.2	205.7
Title plants and other indexes	690.2	686.7
Deferred income taxes	9.4	9.4
Goodwill	1,818.3	1,819.3
Other intangible assets, net	85.4	100.0
Other assets	485.9	460.1
Total assets	18,941.0	16,228.8
Liabilities and Equity
Deposits	7,877.9	5,292.7
Accounts payable and accrued liabilities	902.1	1,002.7
Deferred revenue	208.3	214.0
Reserve for known and incurred but not reported claims	1,151.6	1,169.6
Income taxes payable	55.4	42.7
Deferred income taxes	312.7	312.7
Operating lease liabilities	206.2	218.2
Secured financings payable	1,036.5	906.5
Notes and contracts payable	1,546.5	1,545.4
Total liabilities	13,297.2	10,704.5
Commitments and contingencies (Note 16)
Stockholders’ equity:
Preferred stock, $0.00001 par value; Authorized—0.5 shares; Outstanding—none	0.0	0.0
Common stock, $0.00001 par value; Authorized - 300.0 shares; Outstanding - 102.0 shares and 102.0 shares	0.0	0.0
Additional paid-in capital	1,728.0	1,744.4
Retained earnings	4,240.8	4,011.8
Accumulated other comprehensive loss	(348.0)	(256.7)
Total stockholders’ equity	5,620.8	5,499.5
Noncontrolling interests	23.0	24.8
Total equity	5,643.8	5,524.3
Total liabilities and equity	$ 18,941.0	$ 16,228.8