First American Financial Corporation (NYSE:FAF) Q2 2023 Results Conference Call July 27, 2023 11:00 AM ET
Company Participants
Craig Barberio - Director of Investor Relations
Ken DeGiorgio - Chief Executive Officer
Mark Seaton - Executive Vice President and Chief Financial Officer
Conference Call Participants
Bose George - Keefe, Bruyette & Woods
John Campbell - Stephens Inc
Operator
Greetings, and welcome to the Second Quarter 2023 First American Financial Corporation Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Craig Barberio, Vice President, Investor Relations. Please go ahead.
Craig Barberio
Good morning, and welcome to First American's earnings conference call for the second quarter of 2023. Joining us today on the call will be our Chief Executive Officer, Ken DeGiorgio, and Mark Seaton, Executive Vice President and Chief Financial Officer.
Some of the statements made today may contain forward-looking statements that do not relate strictly to historical or current fact. These forward-looking statements speak only as of the date they are made and the company does not undertake to update these forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. For more information on these risks and uncertainties, please refer to this morning's earnings release and the risk factors discussed in our Form 10-K and subsequent SEC filings.
Our presentation today contains certain non-GAAP financial measures that we believe provide additional insight into the operational performance and performance of the company, operational efficiency, excuse me, and performance of the company relative to earlier periods and relative to the company's competitors.
For more details on these non-GAAP financial measures, including presentation with and reconciliation to the most directly comparable GAAP financials, please refer to this morning's earnings release which is available on our website at www.firstam.com.
I would now like to turn the call over to Ken DeGiorgio.
Ken DeGiorgio
Thank you, Craig. We posted good results in the second quarter, given the continuing market headwinds, a seasonal uplift in our business, strong growth in net investment income and a continued focus on expense management enabled us to deliver a pretax title margin of 12.1% or 12.6% on an adjusted basis.
On a consolidated basis, we earned $1.33 per diluted share or $1.35 on an adjusted basis. Demand in our residential purchase business continues to be pressured by affordability issues due to high mortgage rates, along with low inventory that has kept home prices elevated. The purchase market, however, appears to have stabilized, albeit at trough levels.