10-Q 1 faf-10q_20220630.htm Q2 2022 FORM 10-Q faf-10q_20220630.htm
false Q2 FAF 0001472787 --12-31 0 0 0 0 0001472787 2022-01-01 2022-06-30 xbrli:shares 0001472787 2022-07-25 iso4217:USD 0001472787 2022-06-30 0001472787 2021-12-31 iso4217:USD xbrli:shares 0001472787 2022-04-01 2022-06-30 0001472787 2021-04-01 2021-06-30 0001472787 2021-01-01 2021-06-30 0001472787 us-gaap:CommonStockMember 2021-12-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001472787 us-gaap:RetainedEarningsMember 2021-12-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001472787 us-gaap:ParentMember 2021-12-31 0001472787 us-gaap:NoncontrollingInterestMember 2021-12-31 0001472787 us-gaap:CommonStockMember 2022-01-01 2022-03-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2022-01-01 2022-03-31 0001472787 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-03-31 0001472787 us-gaap:ParentMember 2022-01-01 2022-03-31 0001472787 us-gaap:NoncontrollingInterestMember 2022-01-01 2022-03-31 0001472787 2022-01-01 2022-03-31 0001472787 us-gaap:CommonStockMember 2022-03-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001472787 us-gaap:RetainedEarningsMember 2022-03-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001472787 us-gaap:ParentMember 2022-03-31 0001472787 us-gaap:NoncontrollingInterestMember 2022-03-31 0001472787 2022-03-31 0001472787 us-gaap:CommonStockMember 2022-04-01 2022-06-30 0001472787 us-gaap:AdditionalPaidInCapitalMember 2022-04-01 2022-06-30 0001472787 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0001472787 us-gaap:ParentMember 2022-04-01 2022-06-30 0001472787 us-gaap:NoncontrollingInterestMember 2022-04-01 2022-06-30 0001472787 us-gaap:CommonStockMember 2022-06-30 0001472787 us-gaap:AdditionalPaidInCapitalMember 2022-06-30 0001472787 us-gaap:RetainedEarningsMember 2022-06-30 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001472787 us-gaap:ParentMember 2022-06-30 0001472787 us-gaap:NoncontrollingInterestMember 2022-06-30 0001472787 us-gaap:CommonStockMember 2020-12-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001472787 us-gaap:RetainedEarningsMember 2020-12-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001472787 us-gaap:ParentMember 2020-12-31 0001472787 us-gaap:NoncontrollingInterestMember 2020-12-31 0001472787 2020-12-31 0001472787 us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001472787 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-03-31 0001472787 us-gaap:ParentMember 2021-01-01 2021-03-31 0001472787 us-gaap:NoncontrollingInterestMember 2021-01-01 2021-03-31 0001472787 2021-01-01 2021-03-31 0001472787 us-gaap:CommonStockMember 2021-03-31 0001472787 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001472787 us-gaap:RetainedEarningsMember 2021-03-31 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0001472787 us-gaap:ParentMember 2021-03-31 0001472787 us-gaap:NoncontrollingInterestMember 2021-03-31 0001472787 2021-03-31 0001472787 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001472787 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0001472787 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0001472787 us-gaap:ParentMember 2021-04-01 2021-06-30 0001472787 us-gaap:NoncontrollingInterestMember 2021-04-01 2021-06-30 0001472787 us-gaap:CommonStockMember 2021-06-30 0001472787 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001472787 us-gaap:RetainedEarningsMember 2021-06-30 0001472787 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0001472787 us-gaap:ParentMember 2021-06-30 0001472787 us-gaap:NoncontrollingInterestMember 2021-06-30 0001472787 2021-06-30 0001472787 faf:FirstAmericanTrustMember 2022-06-30 0001472787 faf:FirstAmericanTrustMember 2021-12-31 0001472787 us-gaap:USTreasuryBondSecuritiesMember 2022-06-30 0001472787 us-gaap:MunicipalBondsMember 2022-06-30 0001472787 us-gaap:ForeignGovernmentDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-06-30 0001472787 us-gaap:DomesticCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:ForeignCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:USTreasuryBondSecuritiesMember 2021-12-31 0001472787 us-gaap:MunicipalBondsMember 2021-12-31 0001472787 us-gaap:ForeignGovernmentDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001472787 us-gaap:DomesticCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:ForeignCorporateDebtSecuritiesMember 2021-12-31 0001472787 faf:AggregateDebtSecuritiesExcludingMortgageBackedAndAssetBackedSecuritiesMember 2022-06-30 0001472787 us-gaap:MortgageBackedSecuritiesMember 2022-06-30 0001472787 us-gaap:USTreasuryBondSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:USTreasuryBondSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:USTreasuryBondSecuritiesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:MunicipalBondsMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:MunicipalBondsMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:MunicipalBondsMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:ForeignGovernmentDebtSecuritiesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:USGovernmentAgenciesDebtSecuritiesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:DomesticCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:ForeignCorporateDebtSecuritiesMember us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingInvestmentGradeMember faf:AMinusOrHigherRatingMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingInvestmentGradeMember faf:BBBPlusToBBBMinusMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingNonInvestmentGradeMember 2022-06-30 xbrli:pure 0001472787 us-gaap:BankLoanObligationsMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingNonInvestmentGradeMember us-gaap:BankLoanObligationsMember 2022-06-30 0001472787 faf:HighYieldCorporateDebtSecuritiesMember 2022-06-30 0001472787 faf:EmergingMarketDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingNonInvestmentGradeMember faf:EmergingMarketDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:ExternalCreditRatingNonInvestmentGradeMember faf:HighYieldCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:CommonStockMember 2022-06-30 0001472787 us-gaap:PreferredStockMember 2022-06-30 0001472787 us-gaap:CommonStockMember 2021-12-31 0001472787 us-gaap:PreferredStockMember 2021-12-31 0001472787 faf:NonMarketableEquitySecuritiesMember faf:OfferpadIncMember 2022-04-01 2022-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember faf:OfferpadIncMember 2022-01-01 2022-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember 2022-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember 2021-12-31 0001472787 faf:NonMarketableEquitySecuritiesMember 2022-04-01 2022-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember 2022-01-01 2022-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember 2021-04-01 2021-06-30 0001472787 faf:NonMarketableEquitySecuritiesMember 2021-01-01 2021-06-30 0001472787 faf:InvestmentInInsuranceBusinessMember 2022-01-01 2022-06-30 0001472787 faf:TitleInsuranceAndServicesMember 2021-12-31 0001472787 faf:SpecialtyInsuranceSegmentMember 2021-12-31 0001472787 faf:TitleInsuranceAndServicesMember 2022-01-01 2022-06-30 0001472787 faf:SpecialtyInsuranceSegmentMember 2022-01-01 2022-06-30 0001472787 faf:TitleInsuranceAndServicesMember 2022-06-30 0001472787 faf:SpecialtyInsuranceSegmentMember 2022-06-30 0001472787 2021-01-01 2021-12-31 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2022-04-01 2022-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001472787 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2022-01-01 2022-06-30 0001472787 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryBondSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryBondSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasuryBondSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:MunicipalBondsMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:MunicipalBondsMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:MunicipalBondsMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:DomesticCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:DomesticCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignCorporateDebtSecuritiesMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember 2022-06-30 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:USTreasuryBondSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:USTreasuryBondSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:USTreasuryBondSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:MunicipalBondsMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:MunicipalBondsMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:MunicipalBondsMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignGovernmentDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:DomesticCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:DomesticCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:DomesticCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignCorporateDebtSecuritiesMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:PreferredStockMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:PreferredStockMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:PreferredStockMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel1Member us-gaap:CommonStockMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel2Member us-gaap:CommonStockMember 2021-12-31 0001472787 us-gaap:FairValueInputsLevel3Member us-gaap:CommonStockMember 2021-12-31 0001472787 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2022-06-30 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2022-06-30 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel1Member 2022-06-30 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2022-06-30 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel3Member 2022-06-30 0001472787 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel2Member 2021-12-31 0001472787 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2022-04-01 2022-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2021-04-01 2021-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2022-01-01 2022-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2021-01-01 2021-06-30 0001472787 faf:EmployeeStockPurchasePlanMember 2022-04-01 2022-06-30 0001472787 faf:EmployeeStockPurchasePlanMember 2021-04-01 2021-06-30 0001472787 faf:EmployeeStockPurchasePlanMember 2022-01-01 2022-06-30 0001472787 faf:EmployeeStockPurchasePlanMember 2021-01-01 2021-06-30 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0001472787 us-gaap:RestrictedStockUnitsRSUMember 2022-06-30 0001472787 faf:EmployeeStockPurchasePlanMember 2022-06-30 0001472787 faf:AmendedEmployeeStockPurchasePlanMember 2022-06-30 0001472787 faf:AmendedEmployeeStockPurchasePlanMember 2022-01-01 2022-06-30 0001472787 faf:NewShareRepurchasesPlanMember srt:MaximumMember 2022-06-30 0001472787 faf:NewShareRepurchasesPlanMember 2022-06-30 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-12-31 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2021-12-31 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2021-12-31 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-01-01 2022-06-30 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2022-01-01 2022-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2022-01-01 2022-06-30 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-06-30 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2022-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetTransitionAssetObligationMember 2022-06-30 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2022-04-01 2022-06-30 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2022-04-01 2022-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-04-01 2022-06-30 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-04-01 2021-06-30 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2021-04-01 2021-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-04-01 2021-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2022-01-01 2022-06-30 0001472787 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2021-01-01 2021-06-30 0001472787 us-gaap:AccumulatedTranslationAdjustmentMember 2021-01-01 2021-06-30 0001472787 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2021-01-01 2021-06-30 0001472787 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember 2022-04-01 2022-06-30 0001472787 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember 2021-04-01 2021-06-30 0001472787 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember 2022-01-01 2022-06-30 0001472787 us-gaap:AccumulatedNetInvestmentGainLossIncludingPortionAttributableToNoncontrollingInterestMember 2021-01-01 2021-06-30 0001472787 faf:CaliforniaBasedAcquisitionMember 2022-05-01 2022-05-31 0001472787 faf:CaliforniaBasedAcquisitionMember 2022-05-31 0001472787 faf:CaliforniaBasedAcquisitionMember 2022-04-01 2022-06-30 faf:State 0001472787 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2021-04-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2021-01-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:TitleInsuranceAndServicesMember 2022-04-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:SpecialtyInsuranceSegmentMember 2022-04-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2022-04-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember 2022-04-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:TitleInsuranceAndServicesMember 2021-04-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:SpecialtyInsuranceSegmentMember 2021-04-01 2021-06-30 0001472787 us-gaap:IntersegmentEliminationMember 2021-04-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember 2021-04-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:TitleInsuranceAndServicesMember 2022-01-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:SpecialtyInsuranceSegmentMember 2022-01-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember us-gaap:CorporateMember 2022-01-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember 2022-01-01 2022-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:TitleInsuranceAndServicesMember 2021-01-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember faf:SpecialtyInsuranceSegmentMember 2021-01-01 2021-06-30 0001472787 us-gaap:IntersegmentEliminationMember 2021-01-01 2021-06-30 0001472787 us-gaap:OperatingSegmentsMember 2021-01-01 2021-06-30

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2022

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission file number 001-34580

 

 

 

FIRST AMERICAN FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

26-1911571

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1 First American Way, Santa Ana, California

 

92707-5913

(Address of principal executive offices)

 

(Zip Code)

(714) 250-3000

(Registrant’s telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common stock, $0.00001 par value

 

FAF

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes       No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

On July 25, 2022 there were 104,161,735 shares of common stock outstanding.

 

 

 

 


 

 

 

 

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

INFORMATION INCLUDED IN REPORT

 

PART I: FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1.

 

Financial Statements (unaudited)

  

 

 

 

 

 

 

 

 

 

 

 

 

A. Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021

  

 

5

 

 

 

 

 

 

 

 

 

 

B. Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021

 

 

6

 

 

 

 

 

 

 

 

 

 

C. Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2022 and 2021

 

 

7

 

 

 

 

 

 

 

 

 

 

D. Condensed Consolidated Statements of Stockholders’ Equity for each of the quarters within the six months ended June 30, 2022 and 2021

 

 

8

 

 

 

 

 

 

 

 

 

 

E. Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021

  

 

10

 

 

 

 

 

 

 

 

 

 

F. Notes to Condensed Consolidated Financial Statements

 

 

11

 

 

 

 

 

 

 

 

Item 2.

 

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

  

 

30

 

 

 

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

  

 

40

 

 

 

 

 

 

 

 

Item 4.

 

Controls and Procedures

  

 

40

 

 

 

 

 

 

 

 

PART II: OTHER INFORMATION

  

 

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

  

 

41

 

 

 

 

 

 

 

 

Item 1A.

 

Risk Factors

  

 

41

 

 

 

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

 

51

 

 

 

 

 

 

 

 

Item 6.

 

Exhibits

  

 

52

 

Items 3 through 5 of Part II have been omitted because they are not applicable with respect to the current reporting period.


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 COMPANY’S BUSINESSES;

 

REGULATION OF TITLE INSURANCE RATES;

 

LIMITATIONS ON ACCESS TO PUBLIC RECORDS AND OTHER DATA;

 

CLIMATE CHANGE, HEALTH CRISES, SEVERE WEATHER CONDITIONS AND OTHER CATASTROPHE EVENTS;

 

CHANGES IN RELATIONSHIPS WITH LARGE MORTGAGE LENDERS AND GOVERNMENT-SPONSORED ENTERPRISES;

 

CHANGES IN MEASURES OF THE STRENGTH OF THE COMPANY’S TITLE INSURANCE UNDERWRITERS, INCLUDING RATINGS AND STATUTORY CAPITAL AND SURPLUS;

 

LOSSES IN THE COMPANY’S INVESTMENT PORTFOLIO OR VENTURE INVESTMENT PORTFOLIO;

 

MATERIAL VARIANCE BETWEEN ACTUAL AND EXPECTED CLAIMS EXPERIENCE;

 

DEFALCATIONS, INCREASED CLAIMS OR OTHER COSTS AND EXPENSES ATTRIBUTABLE TO THE COMPANY’S USE OF TITLE AGENTS;

 

ANY INADEQUACY IN THE COMPANY’S RISK MANAGEMENT FRAMEWORK OR USE OF MODELS;

 

SYSTEMS DAMAGE, FAILURES, INTERRUPTIONS, CYBERATTACKS AND INTRUSIONS, OR UNAUTHORIZED DATA DISCLOSURES;

 

INNOVATION EFFORTS OF THE COMPANY AND OTHER INDUSTRY PARTICIPANTS AND ANY RELATED MARKET DISRUPTION;

 

ERRORS AND FRAUD INVOLVING THE TRANSFER OF FUNDS;

 

FAILURES TO RECRUIT AND RETAIN QUALIFIED PERSONNEL;

3


 

 

 

THE COMPANY’S USE OF A GLOBAL WORKFORCE;

 

INABILITY OF THE COMPANY’S SUBSIDIARIES TO PAY DIVIDENDS OR REPAY FUNDS;

 

INABILITY TO REALIZE ANTICIPATED SYNERGIES OR PRODUCE RETURNS THAT JUSTIFY INVESTMENT IN ACQUIRED BUSINESSES; AND

 

OTHER FACTORS DESCRIBED IN THIS QUARTERLY REPORT ON FORM 10-Q, INCLUDING UNDER THE CAPTION “RISK FACTORS” IN ITEM 1A OF PART II.

 

THE FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE THEY ARE MADE.  THE COMPANY DOES NOT UNDERTAKE TO UPDATE FORWARD-LOOKING STATEMENTS TO REFLECT CIRCUMSTANCES OR EVENTS THAT OCCUR AFTER THE DATE THE FORWARD-LOOKING STATEMENTS ARE MADE.

 

 

 

4


 

 

PART I: FINANCIAL INFORMATION

Item 1.Financial Statements.

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

Condensed Consolidated Balance Sheets

(in millions, except par values)

(unaudited)

 

 

June 30,

2022

 

 

December 31,

2021

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,745

 

 

$

1,228

 

Accounts and accrued income receivable, less allowances of $16 and $14

 

418

 

 

 

441

 

Income taxes receivable

 

248

 

 

 

11

 

Investments:

 

 

 

 

 

 

 

Deposits with banks

 

67

 

 

 

58

 

Debt securities, includes pledged securities of $76 and $91 (amortized cost of
$9,257 and $9,317)

 

8,450

 

 

 

9,362

 

Equity securities

 

969

 

 

 

1,176

 

 

 

9,486

 

 

 

10,596

 

Secured financings receivable

 

505

 

 

 

565

 

Property and equipment, net

 

562

 

 

 

506

 

Operating lease assets

 

262

 

 

 

249

 

Title plants and other indexes

 

608

 

 

 

587

 

Deferred income taxes

 

14

 

 

 

14

 

Goodwill

 

1,802

 

 

 

1,588

 

Other intangible assets, net

 

221

 

 

 

218

 

Other assets

 

391

 

 

 

448

 

 

$

16,262

 

 

$

16,451

 

Liabilities and Equity

 

 

 

 

 

 

 

Deposits

$

6,127

 

 

$

5,069

 

Accounts payable and accrued liabilities

 

1,015

 

 

 

1,262

 

Deferred revenue

 

202

 

 

 

224

 

Reserve for known and incurred but not reported claims

 

1,308

 

 

 

1,284

 

Income taxes payable

 

4

 

 

 

24

 

Deferred income taxes

 

314

 

 

 

345

 

Operating lease liabilities

 

284

 

 

 

274

 

Secured financings payable

 

429

 

 

 

538

 

Notes and contracts payable

 

1,646

 

 

 

1,648

 

 

 

11,329

 

 

 

10,668

 

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—105.0 shares and 109.7 shares

 

 

 

 

 

Additional paid-in capital

 

1,891

 

 

 

2,179

 

Retained earnings

 

3,775

 

 

 

3,680

 

Accumulated other comprehensive loss

 

(750

)

 

 

(92

)

Total stockholders’ equity

 

4,916

 

 

 

5,767

 

Noncontrolling interests

 

17

 

 

 

16

 

Total equity

 

4,933

 

 

 

5,783

 

 

$

16,262

 

 

$

16,451

 

 

See notes to condensed consolidated financial statements.

 

5


 

 

 

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Income

(in millions, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums and escrow fees

 

$

897

  

 

$

917

 

 

$

1,671

 

 

$

1,703

 

Agent premiums

 

 

937

  

 

 

905

 

 

 

1,885

 

 

 

1,750

 

Information and other

 

 

308

  

 

 

302

 

 

 

617

 

 

 

581

 

Net investment income

 

 

53

  

 

 

56

 

 

 

99

 

 

 

105

 

Net investment (losses) gains (realized (losses) gains of $(7), $6, $43, $11)

 

 

(133

)

 

 

86

 

 

 

(176

)

 

 

153

 

 

 

 

2,062

  

 

 

2,266

 

 

 

4,096

 

 

 

4,292

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personnel costs

 

 

618

  

 

 

588

 

 

 

1,220

 

 

 

1,123

 

Premiums retained by agents

 

 

748

  

 

 

719

 

 

 

1,506

 

 

 

1,390

 

Other operating expenses

 

 

344

  

 

 

331

 

 

 

681

 

 

 

627

 

Provision for policy losses and other claims

 

 

127

  

 

 

150

 

 

 

249

 

 

 

290

 

Depreciation and amortization

 

 

42

  

 

 

41

 

 

 

83

 

 

 

79

 

Premium taxes

 

 

23

  

 

 

22

 

 

 

47

 

 

 

45

 

Interest

 

 

19

  

 

 

16

 

 

 

39

 

 

 

33

 

 

 

 

1,921

  

 

 

1,867

 

 

 

3,825

 

 

 

3,587

 

Income before income taxes

 

 

141

  

 

 

399

 

 

 

271

 

 

 

705

 

Income taxes

 

 

31

  

 

 

95

 

 

 

63

 

 

 

167

 

Net income

 

 

110

  

 

 

304

 

 

 

208

 

 

 

538

 

Less: Net income attributable to noncontrolling interests

 

 

1

 

 

 

2

 

 

 

1

 

 

 

2

 

Net income attributable to the Company

 

$

109

 

 

$

302

 

 

$

207

 

 

$

536

 

Net income per share attributable to the Company's

stockholders (Note 10):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.01

  

 

$

2.73

 

 

$

1.89

 

 

$

4.83

 

Diluted

 

$

1.01

  

 

$

2.72

 

 

$

1.89

 

 

$

4.81

 

Cash dividends declared per share

 

$

0.51

  

 

$

0.46

 

 

$

1.02

 

 

$

0.92

 

Weighted-average common shares outstanding (Note 10):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

107.9

  

 

 

110.9

 

 

 

109.1

 

 

 

111.0

 

Diluted

 

 

108.1

  

 

 

111.2

 

 

 

109.4

 

 

 

111.3

 

 

See notes to condensed consolidated financial statements.

 

 

6


 

 

 

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

 

$

110

 

 

$

304

 

 

$

208

 

 

$

538

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains on debt securities

 

 

(267

)

 

 

37

 

 

 

(638

)

 

 

(63

)

Foreign currency translation adjustment

 

 

(23

)

 

 

7

 

 

 

(22

)

 

 

9

 

Pension benefit adjustment

 

 

1

 

 

 

 

 

 

2

 

 

 

2

 

Total other comprehensive (loss) income, net of tax

 

 

(289

)

 

 

44

 

 

 

(658

)

 

 

(52

)

Comprehensive (loss) income

 

 

(179

)

 

 

348

 

 

 

(450

)

 

 

486

 

Less: Comprehensive income attributable to noncontrolling interests

 

 

1

 

 

 

2

 

 

 

1

 

 

 

2

 

Comprehensive (loss) income attributable to the Company

 

$

(180

)

 

$

346

 

 

$

(451

)

 

$

484

 

 

See notes to condensed consolidated financial statements.

 

 

7


 

 

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Stockholders’ Equity

(in millions)

(unaudited)

 

 

 

First American Financial Corporation Stockholders

 

 

 

 

 

 

 

 

 

Shares

 

 

Common
stock

 

 

Additional
paid-in
capital

 

 

Retained
earnings

 

 

Accumulated
other
comprehensive
income (loss)

 

 

Total
stockholders’
equity

 

 

Noncontrolling
interests

 

 

Total

 

Balance at December 31, 2021

 

 

109.7

 

 

$

 

 

$

2,179

 

 

$

3,680

 

 

$

(92

)

 

$

5,767

 

 

$

16

 

 

$

5,783

  

Net income for three months ended March 31, 2022

 

 

 

  

 

 

  

 

 

  

 

98

  

 

 

 

 

 

98

  

 

 

 

 

 

98

  

Dividends on common shares

 

 

 

  

 

 

  

 

 

  

 

(56

 

 

 

 

 

(56

)

 

 

 

 

 

(56

)

Repurchases of Company shares

 

 

(1.6

)

 

 

 

 

 

(108

)

 

 

 

 

 

 

 

 

(108

)

 

 

 

 

 

(108

)

Shares issued in connection with share-based compensation

 

 

0.6

  

  

 

 

  

 

(11

)

  

 

(1

 

 

 

 

 

(12

)

 

 

 

 

 

(12

)

Share-based compensation

 

 

 

  

 

 

  

 

43

  

  

 

 

 

 

 

 

 

43

 

 

 

 

 

 

43

 

Other comprehensive loss

 

 

 

  

 

 

  

 

 

  

 

 

 

 

(369

)

 

 

(369

)

 

 

 

 

 

(369

)

Balance at March 31, 2022

 

 

108.7

  

  

$

  

  

$

2,103

  

  

$

3,721

  

 

$

(461

)

 

$

5,363

 

 

$

16

 

 

$

5,379

  

Net income for three months ended June 30, 2022

 

 

 

  

 

 

  

 

 

  

 

109

  

 

 

 

 

 

109

  

 

 

1

 

 

 

110

  

Dividends on common shares

 

 

 

  

 

 

  

 

 

  

 

(54

 

 

 

 

 

(54

)

 

 

 

 

 

(54

)

Repurchases of Company shares

 

 

(3.9

)

 

 

 

 

 

(227

)

 

 

 

 

 

 

 

 

(227

)

 

 

 

 

 

(227

)

Shares issued in connection with share-based compensation

 

 

0.2

  

  

 

 

  

 

6

 

  

 

(1

 

 

 

 

 

5

 

 

 

 

 

 

5

 

Share-based compensation

 

 

 

  

 

 

  

 

9

  

  

 

 

 

 

 

 

 

9

 

 

 

 

 

 

9

 

Other comprehensive loss

 

 

 

  

 

 

  

 

 

  

 

 

 

 

(289

)

 

 

(289

)

 

 

 

 

 

(289

)

Balance at June 30, 2022

 

 

105.0

  

  

$

  

  

$

1,891

  

  

$

3,775

  

 

$

(750

)

 

$

4,916

 

 

$

17

 

 

$

4,933

  

 

 

See notes to condensed consolidated financial statements.


8


 

 

FIRST AMERICAN FINANCIAL CORPORATION

AND SUBSIDIARY COMPANIES

Condensed Consolidated Statements of Stockholders’ Equity – (Continued)

(in millions)

(unaudited)

 

 

 

First American Financial Corporation Stockholders

 

 

 

 

 

 

 

 

 

Shares

 

 

Common
stock

 

 

Additional
paid-in
capital

 

 

Retained
earnings

 

 

Accumulated
other
comprehensive
income (loss)

 

 

Total
stockholders’
equity

 

 

Noncontrolling
interests

 

 

Total

 

Balance at December 31, 2020

 

 

110.4

 

 

$

 

 

$

2,215

 

 

$

2,655

 

 

$

40

 

 

$

4,910

 

 

$

12

 

 

$

4,922

  

Net income for three months ended March 31, 2021

 

 

 

  

 

 

  

 

 

  

 

234

  

 

 

 

 

 

234

  

 

 

 

 

 

234

  

Dividends on common shares

 

 

 

  

 

 

  

 

 

  

 

(51

 

 

 

 

 

(51

)

 

 

 

 

 

(51

)

Repurchases of Company shares

 

 

(1.2

)

 

 

 

 

 

(65

)

 

 

 

 

 

 

 

 

(65

)

 

 

 

 

 

(65

)

Shares issued in connection with share-based compensation

 

 

0.5

  

  

 

 

  

 

(7

)

  

 

(1

 

 

 

 

 

(8

)

 

 

 

 

 

(8

)

Share-based compensation

 

 

 

  

 

 

  

 

31

  

  

 

 

 

 

 

 

 

31

 

 

 

 

 

 

31

 

Net activity related to noncontrolling interests

 

 

 

  

 

 

  

 

 

  

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Other comprehensive loss

 

 

 

  

 

 

  

 

 

  

 

 

 

 

(96

)

 

 

(96

)

 

 

 

 

 

(96

)

Balance at March 31, 2021

 

 

109.7

  

  

$

  

  

$

2,174

  

  

$

2,837

  

 

$

(56

 

$

4,955

 

 

$

11

 

 

$

4,966