Schedule II

12 Months Ended

Dec. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

AS OF DECEMBER 31, 2017 AND 2016

	2017		2016
Assets:
Cash and cash equivalents	$	5,872,001	$	10,178,219
Investments in fixed maturities, available-for-sale	22,713,771		16,505,866
Investments in equity securities, available-for-sale	3,691,564		3,193,268
Short-term investments	5,808,966		3,162,283
Investments in affiliated companies	128,580,223		113,234,094
Other investments	5,167,102		4,318,296
Premium and fees receivable	94,521		99,878
Other receivables	1,629,758		1,986,634
Income taxes recoverable	3,878,824		2,562,589
Accrued interest and dividends	198,297		86,481
Property, net	2,253,866		2,340,605
Total Assets	$	179,888,893	$	157,668,213
Liabilities and Stockholders’ Equity
Liabilities:
Accounts payable and accrued liabilities	$	1,916,253	$	2,370,963
Deferred income taxes, net	137,153		252,181
Total liabilities	2,053,406		2,623,144
Stockholders’ Equity:
Preferred stock (1,000,000 authorized shares; no shares issued)	—		—
Common stock – no par value (10,000,000 authorized shares; 1,885,993 and 1,884,283 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively, excluding in each period 291,676 shares of common stock held by the Company)	1		1
Retained earnings	161,890,660		143,283,621
Accumulated other comprehensive income	15,944,826		11,761,447
Total stockholders’ equity	177,835,487		155,045,069
Total Liabilities and Stockholders’ Equity	$	179,888,893	$	157,668,213

See notes to Condensed Financial Statements.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015

	2017			2016			2015
Revenues:
Investment income – interest and dividends	$	501,653		$	525,453		$	535,963
Net realized gain (loss) on investments	35,834			77,895			(152,026		)
Rental income	812,951			772,123			765,134
Miscellaneous income	220,497			77,074			385,058
Total	1,570,935			1,452,545			1,534,129
Operating Expenses:
Salaries, employee benefits and payroll taxes	1,004,177			664,436			651,957
Office occupancy and operations	213,547			236,954			239,176
Business development	98,562			99,229			76,684
Taxes – other than payroll and income	396,084			183,566			213,466
Professional and contract labor fees	134,659			377,738			378,265
Other expenses	269,300			246,375			198,788
Total	2,116,329			1,808,298			1,758,336
Equity in Net Income of Affiliated Companies	25,633,964			19,665,205			12,640,260
Income before Income Taxes	25,088,570			19,309,452			12,416,053
Income Tax Benefit	(612,000		)	(206,000		)	(133,000		)
Net Income	25,700,570			19,515,452			12,549,053
Net Loss (Income) Attributable to Noncontrolling Interests	5,932			7,666			(15,148		)
Net Income Attributable to the Company	$	25,706,502		$	19,523,118		$	12,533,905
Basic Earnings per Common Share	$	13.63		$	10.23		$	6.32
Weighted Average Shares Outstanding – Basic	1,886,354			1,907,675			1,984,360
Diluted Earnings per Common Share	$	13.56		$	10.19		$	6.30
Weighted Average Shares Outstanding – Diluted	1,895,871			1,915,057			1,989,799
Cash Dividends Paid per Common Share	$	3.75		$	0.72		$	0.40

See notes to Condensed Financial Statements.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015

	2017			2016			2015
Operating Activities
Net income	$	25,700,570		$	19,515,452		$	12,549,053
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Equity in net earnings of subsidiaries	(25,633,964		)	(19,665,205		)	(12,640,260		)
Depreciation	97,407			93,086			112,690
Amortization, net	157,674			163,989			192,654
Share-based compensation expense related to stock appreciation rights and options	219,315			132,098			137,759
Net loss on disposals of property	2,955			—			1,683
Net realized (gain) loss on investments	(35,834		)	(77,895		)	152,026
Net loss (earnings) from other investments	4,994			(13,135		)	(237,686		)
(Benefit) provision for deferred income taxes	(211,000		)	(18,000		)	13,000
Decrease (increase) in receivables	362,233			1,037,423			(847,177		)
(Increase) decrease in income taxes recoverable	(1,316,235		)	(796,982		)	169,803
(Increase) decrease in other assets	(111,816		)	33,888			7,852
(Decrease) increase in accounts payable and accrued liabilities	(454,710		)	(896,311		)	1,192,927
Net cash (used in) provided by operating activities	(1,218,411		)	(491,592		)	804,324
Investing Activities
Purchase of subsidiary	—			(10,918,003		)	—
Dividends received from subsidiaries	14,816,379			17,330,948			7,630,835
Purchases of available-for-sale securities	(13,178,177		)	(1,783,223		)	(260,044		)
Purchases of short-term securities	(5,835,325		)	(3,162,283		)	(2,721,578		)
Purchases of and net earnings from other investments	(1,049,680		)	(1,552,769		)	(2,007,798		)
Proceeds from sales and maturities of available-for-sale securities	6,616,875			6,815,907			2,475,557
Proceeds from sales and maturities of short-term securities	3,188,641			3,005,647			—
Proceeds from sales and distributions of other investments	195,881			321,758			734,170
Purchases of property	(13,623		)	(144,915		)	(32,071		)
Net cash provided by investing activities	4,740,971			9,913,067			5,819,071
Financing Activities
Repurchases of common stock	(244,831		)	(6,219,670		)	(5,483,953		)
Exercise of stock appreciation rights and options	(737		)	(200		)	54,988
Proceeds from note payable	—			6,000,000			—
Payments on note payable	—			(6,000,000		)	—
Capital contribution to subsidiary	(510,000		)	—			—
Dividends paid	(7,073,210		)	(1,370,390		)	(789,907		)
Net cash used in financing activities	(7,828,778		)	(7,590,260		)	(6,218,872		)
Net (Decrease) Increase in Cash and Cash Equivalents	(4,306,218		)	1,831,215			404,523
Cash and Cash Equivalents, Beginning of Period	10,178,219			8,347,004			7,942,481
Cash and Cash Equivalents, End of Period	$	5,872,001		$	10,178,219		$	8,347,004
Supplemental Disclosures:
Income tax payments, net	$	11,447,000		$	4,964,000		$	4,598,000

See notes to Condensed Financial Statements.

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015

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	2017		2016		2015
Investors Title Insurance Company, net*	$	13,236,379	$	15,838,248	$	7,134,823
Investors Title Exchange Corporation	300,000		100,000		245,000
Investors Title Accommodation Corporation	80,000		45,000		12,000
Investors Capital Management Company	—		—		9,012
Investors Trust Company	200,000		750,000		—
Investors Title Commercial Agency, LLC	150,000		125,000		230,000
National Investors Holdings, LLC	850,000		472,700		—
Total	$	14,816,379	$	17,330,948	$	7,630,835

* Total dividends of $14,330,164, $16,048,255 and $7,251,493 paid to the Parent Company in 2017, 2016 and 2015, respectively, netted with dividends of $1,093,785, $210,007 and $116,670 received from the Parent Company in 2017, 2016 and 2015, respectively.