First American Financial Corporation Soars in Q2 2026 with Strong Commercial and Banking Performances
First American Financial Corporation has announced its outstanding second quarter earnings for 2026, with adjusted earnings per share reaching $2.08, a significant increase of 36% from the previous year.
In what was a standout performance, the company's commercial division delivered impressive results, with revenue growing by 34%, setting a new record for the second quarter. This was driven in part by the completion of 14 transactions generating more than $1 million in premium, up from 11 in the same period last year.
Within its National Commercial Services division, demand remained broad-based across all asset classes, with ten out of eleven experiencing growth on a year-over-year basis. Purchase revenue increased by 2% as affordability challenges affected existing home sales, while refinance revenue jumped 18%, reflecting the surge in open orders when mortgage rates reached their lowest level since 2022.
One of the key drivers of earnings continued to be First American Trust, the company's bank, which provides a growing source of investment income. Average deposits totaled $7.9 billion during the quarter, an increase of 30% from last year, with growth driven by deposits outside of its captive title business.
The largest contributor to non-title deposits was ServiceMac, the mortgage sub-servicer, accounting for $1.7 billion, a significant jump of 76% from last year. The company's loan portfolio expanded by 54% during the quarter, and with that growth expected to continue, so too should its deposits.
The launch of First American Trust's 1031 exchange banking solution has also seen rapid growth in deposits, averaging $827 million for the second quarter and representing roughly one-third of total 1031 balances. The agent banking strategy is gaining traction as well, with today's number standing at 310 title agents banking with First American Trust, a 37% increase from last year.
These developments not only highlight the company's growth potential but also underscore its banking segment as a valuable countercyclical earnings driver. As First American Financial Corporation continues to leverage AI across its enterprise, it aims to amplify employee talents, better serve customers, and strengthen operating capabilities.
The benefits of this strategy have already become tangible, with the company needing to update 1,300 forms across the business. Using its new AI tools, the time required for this process was reduced by an impressive 97%.
These accomplishments demonstrate First American Financial Corporation's ability to navigate and thrive in today's complex market landscape, and they position the company for continued growth and success moving forward.
