First American (FAF) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 23, 2026 astatine 12:04 PM CDT 34 min read

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Thursday, April 23, 2026 astatine 11 a.m. ET

• Chief Executive Officer — Mark Seaton

• Chief Financial Officer — Matthew Wajner

• Head of Investor Relations — Craig J. Barberio

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Craig J. Barberio: Good morning, everyone, and again, invited to First American's net league telephone for the archetypal 4th of 2026. Joining america contiguous connected the telephone volition beryllium our Chief Executive Officer, Mark Seaton, and Matt Weisner, Chief Financial Officer. Some of the statements made contiguous whitethorn incorporate forward-looking statements that bash not subordinate strictly to humanities oregon existent fact. These forward-looking statements talk lone arsenic of the day they are made, and the institution does not undertake to update forward-looking statements to bespeak circumstances oregon events that hap aft the day the forward-looking statements are made. Risks and uncertainties beryllium that whitethorn origin results to disagree materially from those acceptable distant successful these forward-looking statements.

For much accusation connected these risks and uncertainties, delight notation to yesterday's net merchandise and the hazard factors discussed successful our Form 10-K and consequent SEC filings. Our presumption contiguous contains definite non-GAAP fiscal measures that we judge supply further penetration into the operational ratio and show of the institution comparative to earlier periods and comparative to the company's competitors. For much details connected these non-GAAP fiscal measures, including presumption with and reconciliation to the astir straight comparable GAAP financials, delight notation to yesterday's net merchandise which is disposable connected our website astatine www.firstam.com. I'll present crook the telephone implicit to Mark Seaton.

Mark Seaton: Thank you, Craig. We are pleased to study continued momentum successful the archetypal quarter, generating adjusted net per stock of $1.33, a 58% summation from the anterior year. In commercial, gross grew 48%, achieving a grounds for a archetypal quarter. Notably, we closed 20 orders, generating much than $1 cardinal successful premium, treble the magnitude from past year. In our National Commercial Services division, we are seeing broad-based spot with 9 of our 11 plus classes up year-over-year. Data centers stay a meaningful tailwind with gross tied to this assemblage expanding 76% comparative to past year. We are besides seeing beardown enactment successful our Energy Group, which grew 250% and was a apical 5 plus people during the quarter.

Residential acquisition gross continues to lag. We person been much bearish connected the acquisition marketplace this twelvemonth than astir nationalist forecasts, and that presumption is proving close arsenic acquisition gross declined 4% year-over-year. On the refinance side, we saw a humble payment during the 4th erstwhile owe rates dipped into the debased 6% range. While this provided immoderate assistance successful the archetypal quarter, volumes person since softened arsenic rates moved higher again. Another cardinal net drivers are bank, First American Trust, which continues to supply a dependable watercourse of concern income. During Q1, mean deposits totaled $6.8 billion, up 19% from past year.