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Schedule II
 12 Months Ended
Dec. 31, 2014
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, 2014 AND 2013
 
2014
 
2013
Assets:
 
 
 
Cash and cash equivalents
$
7,942,481

 
$
7,210,956

Investments in fixed maturities, available-for-sale
24,358,323

 
19,202,320

Investments in equity securities, available-for-sale
2,529,982

 
2,265,136

Short-term investments
284,069

 
2,213,496

Investments in affiliated companies
96,395,352

 
90,570,724

Other investments
1,578,236

 
737,378

Premium and fees receivable
56,428

 
135,669

Other receivables
2,220,330

 
1,456,037

Income taxes recoverable
1,876,242

 
3,230,977

Accrued interest and dividends
128,221

 
103,571

Property, net
2,371,078

 
2,504,969

Total Assets
$
139,740,742

 
$
129,631,233


 
 
 
Liabilities and Stockholders’ Equity
 

 
 

Liabilities:
 

 
 

Accounts payable and accrued liabilities
$
2,074,347

 
$
1,558,095

Deferred income taxes, net
102,689

 
10,984

Total liabilities
2,177,036

 
1,569,079


 
 
 
Stockholders’ Equity:
 

 
 

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

 
—

Common stock - no par value (10,000,000 authorized shares; 2,023,270 and 2,037,135 shares issued and outstanding 2014 and 2013, respectively, excluding 291,676 shares for 2014 and 2013 of common stock held by the Company’s subsidiary)
1

 
1

Retained earnings
124,707,196

 
116,714,749

Accumulated other comprehensive income
12,856,509

 
11,347,404

Total stockholders’ equity
137,563,706

 
128,062,154

Total Liabilities and Stockholders’ Equity
$
139,740,742

 
$
129,631,233


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
 
 
2014
 
2013
 
2012
Revenues:
 
 
 
 
 
 
Investment income – interest and dividends
 
$
482,711

 
$
348,933

 
$
520,511

Net realized gain (loss) on investments
 
9,169

 
(50,778
)
 
616,001

Rental income
 
772,256

 
748,764

 
736,159

Miscellaneous income (loss)
 
59,569

 
68,966

 
(62,253
)
Total
 
1,323,705

 
1,115,885

 
1,810,418


 
 
 
 
 
 
Operating Expenses:
 
 

 
 

 
 

Salaries, employee benefits and payroll taxes
 
673,729

 
576,429

 
459,248

Office occupancy and operations
 
270,881

 
408,373

 
390,227

Business development
 
49,059

 
45,022

 
25,909

Taxes – other than payroll and income
 
200,718

 
188,314

 
240,607

Professional and contract labor fees
 
192,064

 
351,093

 
245,398

Other expenses
 
193,681

 
177,810

 
161,937

Total
 
1,580,132

 
1,747,041

 
1,523,326


 
 
 
 
 
 
Equity in Net Income of Affiliated Companies
 
9,777,925

 
15,164,894

 
10,992,815


 
 
 
 
 
 
Income before Income Taxes
 
9,521,498

 
14,533,738

 
11,279,907


 
 
 
 
 
 
(Benefit) Provision for Income Taxes
 
(151,000
)
 
(263,000
)
 
89,000


 
 
 
 
 
 
Net Income
 
9,672,498

 
14,796,738

 
11,190,907


 
 
 
 
 
 
Net Income Attributable to Redeemable Noncontrolling Interest
 
(23,523
)
 
(88,528
)
 
(88,411
)

 
 
 
 
 
 
Net Income Attributable to the Company
 
$
9,648,975

 
$
14,708,210

 
$
11,102,496


 
 
 
 
 
 
Basic Earnings per Common Share
 
$
4.75

 
$
7.15

 
$
5.33


 
 
 
 
 
 
Weighted Average Shares Outstanding – Basic
 
2,031,760

 
2,056,169

 
2,081,703


 
 
 
 
 
 
Diluted Earnings per Common Share
 
$
4.74

 
$
7.08

 
$
5.24


 
 
 
 
 
 
Weighted Average Shares Outstanding – Diluted
 
2,037,534

 
2,076,628

 
2,116,793

 
 
 
 
 
 
 
Cash Dividends Paid per Common Share
 
$
0.32

 
$
0.32

 
$
0.29


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
 
2014
 
2013
 
2012
Operating Activities
 
 
 
 
 
Net income
$
9,672,498

 
$
14,796,738

 
$
11,190,907

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

 
 

 
 

Equity in net earnings of subsidiaries
(9,777,925
)
 
(15,164,894
)
 
(10,992,815
)
Depreciation
136,369

 
136,031

 
133,334

Amortization, net
210,768

 
69,969

 
51,111

Issuance of common stock in payment of bonuses and fees
164,730

 
76,110

 
54,041

Net loss on disposals of property
2,722

 
—

 
—

Net realized (gain) loss on investments
(19,231
)
 
50,778

 
(616,001
)
Net loss (earnings) from other investments
322

 
(32,499
)
 
91,256

(Benefit) provision for deferred income taxes
(40,000
)
 
(93,000
)
 
48,000

(Increase) decrease in receivables
(685,052
)
 
(146,247
)
 
368,574

Decrease (increase) in income taxes recoverable
1,354,735

 
(1,646,373
)
 
(398,445
)
(Increase) decrease in other assets
(24,650
)
 
(101
)
 
20,224

Increase (decrease) in accounts payable and accrued liabilities
516,252

 
(8,118
)
 
(124,799
)
Net cash provided by (used in) operating activities
1,511,538

 
(1,961,606
)
 
(174,613
)

 
 
 
 
 
Investing Activities
 

 
 

 
 

Capital contribution to subsidiaries
—

 
—

 
(250,000
)
Dividends received from subsidiaries
5,051,664

 
9,252,919

 
5,609,489

Purchases of available-for-sale securities
(6,883,612
)
 
(10,360,919
)
 
(4,960,208
)
Purchases of short-term securities
(104,207
)
 
(58,283
)
 
(3,565
)
Purchases of and net earnings from other investments
(964,197
)
 
(49,485
)
 
(94,881
)
Proceeds from sales and maturities of available-for-sale securities
1,631,987

 
3,027,896

 
5,033,298

Proceeds from sales and maturities of short-term securities
2,033,634

 
2,748,876

 
3,641,978

Proceeds from sales and distributions of other investments
123,017

 
45,384

 
505,832

Proceeds from sales of other assets
—

 
4,832

 
176,815

Purchases of property
(5,200
)
 
(24,820
)
 
(98,722
)
Proceeds from disposals of property
—

 
7,200

 
—

Net cash provided by investing activities
883,086

 
4,593,600

 
9,560,036


 
 
 
 
 
Financing Activities
 

 
 

 
 

Repurchases of common stock
(1,055,765
)
 
(4,262,260
)
 
(3,975,532
)
Exercise of options
27,100

 
75,797

 
160,557

Excess tax benefit
15,999

 
9,042

 
—

Dividends paid
(650,433
)
 
(657,914
)
 
(603,334
)
Net cash used in financing activities
(1,663,099
)
 
(4,835,335
)
 
(4,418,309
)

 
 
 
 
 
Net Increase (Decrease) in Cash and Cash Equivalents
731,525

 
(2,203,341
)
 
4,967,114

Cash and Cash Equivalents, Beginning of Period
7,210,956

 
9,414,297

 
4,447,183

Cash and Cash Equivalents, End of Period
$
7,942,481

 
$
7,210,956

 
$
9,414,297


 
 
 
 
 
Supplemental Disclosures:
 
 
 
 
 
Income tax payments, net
$
2,699,000

 
$
5,583,000

 
$
4,392,000


See notes to Condensed Financial Statements.
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012

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
2014
 
2013
 
2012
Investors Title Insurance Company, net*
$
4,906,664

 
$
9,102,919

 
$
5,169,489

Investors Title Exchange Corporation
50,000

 
50,000

 
10,000

Investors Title Accommodation Corporation
10,000

 
—

 
30,000

Investors Title Management Services, Inc.
—

 
—

 
—

Investors Capital Management Company
40,000

 
—

 
50,000

Investors Trust Company
—

 
100,000

 
350,000

Investors Title Commercial Agency, LLC
45,000

 
—

 
—

Total
$
5,051,664

 
$
9,252,919

 
$
5,609,489


* Total dividends of $5,000,000, $9,196,255 and $5,254,075 paid to the Parent Company in 2014, 2013 and 2012, respectively, netted with dividends of $93,336, $93,336 and $84,586 received from the Parent Company in 2014, 2013 and 2012, respectively.