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Schedule II
 12 Months Ended
Dec. 31, 2013
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Registrant
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEETS
AS OF DECEMBER 31, 2013 AND 2012
 
2013
 
2012
Assets:
 
 
 
Cash and cash equivalents
$
7,210,956

 
$
9,414,297

Investments in fixed maturities, available-for-sale
19,202,320

 
12,176,628

Investments in equity securities, available-for-sale
2,265,136

 
1,862,518

Short-term investments
2,213,496

 
4,904,089

Investments in affiliated companies
90,570,724

 
81,395,754

Other investments
737,378

 
734,848

Premium and fees receivable
135,669

 
138,830

Other receivables
1,456,037

 
1,306,629

Income taxes recoverable
3,230,977

 
1,584,604

Accrued interest and dividends
103,571

 
103,470

Property, net
2,504,969

 
2,623,380

Total Assets
$
129,631,233

 
$
116,245,047

 
 
 
 
Liabilities and Stockholders’ Equity
 

 
 

Liabilities:
 

 
 

Accounts payable and accrued liabilities
$
1,558,095

 
$
1,566,213

Deferred income taxes, net
10,984

 
39,944

Total liabilities
1,569,079

 
1,606,157

 
 
 
 
 
 
 
 
Stockholders’ Equity:
 

 
 

Preferred stock (1,000,000 authorized shares; no shares issued)
—

 
—

Common stock - no par value (10,000,000 authorized shares; 2,037,135 and 2,043,359 shares issued and outstanding 2013 and 2012, respectively, excluding 291,676 shares for 2013 and 2012 of common stock held by the Company’s subsidiary)
1

 
1

Retained earnings
116,714,749

 
105,820,459

Accumulated other comprehensive income
11,347,404

 
8,818,430

Total stockholders’ equity
128,062,154

 
114,638,890

Total Liabilities and Stockholders’ Equity
$
129,631,233

 
$
116,245,047


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
 
 
2013
 
2012
 
2011
Revenues:
 
 
 
 
 
 
Investment income – interest and dividends
 
$
348,933

 
$
520,511

 
$
459,682

Net realized (loss) gain on investments
 
(50,778
)
 
616,001

 
(81,389
)
Rental income
 
748,764

 
736,159

 
739,524

Miscellaneous income (loss)
 
68,966

 
(62,253
)
 
16,365

Total
 
1,115,885

 
1,810,418

 
1,134,182

 
 
 
 
 
 
 
Operating Expenses:
 
 

 
 

 
 

Salaries, employee benefits and payroll taxes
 
576,429

 
459,248

 
348,463

Office occupancy and operations
 
408,373

 
390,227

 
304,371

Business development
 
45,022

 
25,909

 
37,017

Taxes – other than payroll and income
 
188,314

 
240,607

 
120,445

Professional and contract labor fees
 
351,093

 
245,398

 
139,711

Other expenses
 
177,810

 
161,937

 
113,018

Total
 
1,747,041

 
1,523,326

 
1,063,025

 
 
 
 
 
 
 
Equity in Net Income of Affiliated Companies
 
15,164,894

 
10,992,815

 
6,851,779

 
 
 
 
 
 
 
Income before Income Taxes
 
14,533,738

 
11,279,907

 
6,922,936

 
 
 
 
 
 
 
(Benefit) Provision for Income Taxes
 
(263,000
)
 
89,000

 
(11,000
)
 
 
 
 
 
 
 
Net Income
 
14,796,738

 
11,190,907

 
6,933,936

 
 
 
 
 
 
 
Less: Net Income Attributable to Redeemable Noncontrolling Interest
 
(88,528
)
 
(88,411
)
 
—

 
 
 
 
 
 
 
Net Income Attributable to the Company
 
$
14,708,210

 
$
11,102,496

 
$
6,933,936

 
 
 
 
 
 
 
Basic Earnings per Common Share
 
$
7.15

 
$
5.33

 
$
3.22

 
 
 
 
 
 
 
Weighted Average Shares Outstanding – Basic
 
2,056,169

 
2,081,703

 
2,151,350

 
 
 
 
 
 
 
Diluted Earnings per Common Share
 
$
7.08

 
$
5.24

 
$
3.20

 
 
 
 
 
 
 
Weighted Average Shares Outstanding – Diluted
 
2,076,628

 
2,116,793

 
2,169,636


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011
 
2013
 
2012
 
2011
Operating Activities
 
 
 
 
 
Net income
$
14,796,738

 
$
11,190,907

 
$
6,933,936

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

 
 

Equity in net earnings of subsidiaries
(15,164,894
)
 
(10,992,815
)
 
(6,851,779
)
Depreciation
136,031

 
133,334

 
128,215

Amortization, net
69,969

 
51,111

 
(15,859
)
Issuance of common stock in payment of bonuses and fees
76,110

 
54,041

 
44,205

Net realized loss (gain) on investments
50,778

 
(616,001
)
 
81,389

Net (earnings) loss from other investments
(32,499
)
 
91,256

 
1,723

(Benefit) provision for deferred income taxes
(93,000
)
 
48,000

 
(94,000
)
Excess tax benefit
9,042

 
—

 
—

(Increase) decrease in receivables
(146,247
)
 
368,574

 
(838,208
)
Increase in income taxes recoverable
(1,646,373
)
 
(398,445
)
 
(137,379
)
(Increase) decrease in other assets
(101
)
 
20,224

 
21,836

(Decrease) increase in accounts payable and accrued liabilities
(8,118
)
 
(124,799
)
 
445,758

Net cash used in operating activities
(1,952,564
)
 
(174,613
)
 
(280,163
)
 
 
 
 
 
 
Investing Activities
 

 
 

 
 

Capital contribution to subsidiaries
—

 
(250,000
)
 
—

Dividends received from subsidiaries
9,252,919

 
5,609,489

 
223,331

Purchases of available-for-sale securities
(10,360,919
)
 
(4,960,208
)
 
(4,625,140
)
Purchases of short-term securities
(58,283
)
 
(3,565
)
 
(203,530
)
Purchases of and net earnings from other investments
(49,485
)
 
(94,881
)
 
(666,935
)
Proceeds from sales and maturities of available-for-sale securities
3,027,896

 
5,033,298

 
1,601,297

Proceeds from sales and maturities of short-term securities
2,748,876

 
3,641,978

 
13,403,243

Proceeds from sales and distributions of other investments
45,384

 
505,832

 
8,064

Proceeds from sales of other assets
4,832

 
176,815

 
—

Purchases of property
(24,820
)
 
(98,722
)
 
(96,161
)
Proceeds from disposals of property
7,200

 
—

 
—

Net cash provided by investing activities
4,593,600

 
9,560,036

 
9,644,169

 
 
 
 
 
 
Financing Activities
 

 
 

 
 

Repurchases of common stock
(4,262,260
)
 
(3,975,532
)
 
(5,940,463
)
Exercise of options
75,797

 
160,557

 
155,163

Dividends paid
(657,914
)
 
(603,334
)
 
(599,241
)
Net cash used in financing activities
(4,844,377
)
 
(4,418,309
)
 
(6,384,541
)
 
 
 
 
 
 
Net (Decrease) Increase in Cash and Cash Equivalents
(2,203,341
)
 
4,967,114

 
2,979,465

Cash and Cash Equivalents, Beginning of Period
9,414,297

 
4,447,183

 
1,467,718

Cash and Cash Equivalents, End of Period
$
7,210,956

 
$
9,414,297

 
$
4,447,183

 
 
 
 
 
 
Supplemental Disclosures:
 
 
 
 
 
Income tax payments, net
$
5,583,000

 
$
4,392,000

 
$
2,911,000


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011

1.
The accompanying Condensed Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto of Investors Title Company and Subsidiaries.

2.
Cash dividends paid to Investors Title Company by its wholly owned subsidiaries were as follows:
Subsidiaries
2013
 
2012
 
2011
Investors Title Insurance Company, net*
$
9,102,919

 
$
5,169,489

 
$
(81,669
)
Investors Title Exchange Corporation
50,000

 
10,000

 
175,000

Investors Title Accommodation Corporation
—

 
30,000

 
—

Investors Title Management Services, Inc.
—

 
—

 
—

Investors Title Capital Management Corporation
—

 
50,000

 
30,000

Investors Trust Company
100,000

 
350,000

 
100,000

Investors Title Commercial Agency
—

 
—

 
—

Total
$
9,252,919

 
$
5,609,489

 
$
223,331


* Total dividends of $9,196,255, $5,254,075 and $0 paid to the Parent Company in 2013, 2012 and 2011, respectively, netted with dividends of $93,336, $84,586 and $81,669 received from the Parent Company in 2013, 2012 and 2011, respectively.