EX-99 4 a4441392ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Investors Title Releases Second Quarter Earnings CHAPEL HILL, N.C.--(BUSINESS WIRE)--July 24, 2003--J. Allen Fine, Chairman of Investors Title Company (NASDAQ:ITIC), announced that for the quarter ended June 30, 2003, the Company had an all-time record quarter net income of $3,087,452, an increase of 82% compared with the same quarter in 2002. Diluted earnings per share were $1.18 versus $.65 in the prior year period. Net premiums written increased 57% to $23,322,629 from $14,871,197 and total revenues increased 56% to $25,179,643. For the six-month period ended June 30, 2003, the Company reported net income of $5,696,013, an increase of 75% compared with the same six-month period in 2002. Diluted earnings per share were $2.18 versus $1.25 in the prior year period. Net premiums written increased 45% to $42,990,614 and total revenues increased 44% to $46,208,086. Chairman Fine added, "This latest period marks the eighth consecutive record quarter for net income and the tenth consecutive quarter for record revenue. Revenue and earnings continued to be driven by mortgage refinancing. Interest rates declined through the period as fears persisted over possible deflation. In response to lower rates, applications for mortgage refinancing surged to unprecedented levels. Nationally, refinancings represented over 75% of weekly mortgage applications at the end of the quarter." Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. Title insurance is typically sold when real estate is purchased and upon refinancing of loans secured by real estate. Policies are issued through 28 company-owned branch offices and a network of agents located across 24 states and the District of Columbia. The Company also provides services in connection with tax-free exchanges of like-kind property. Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. For more details on risk, uncertainties and other factors that could affect expectations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2002, as filed with the Securities and Exchange Commission. Investors Title Company and Subsidiaries Consolidated Statements of Income June 30, 2003 and 2002 (Unaudited) For The Three For The Six Months Ended Months Ended June 30 June 30 ----------- ----------- 2003 2002 2003 2002 ----- ----- ----- ----- Revenues: Underwriting income: Premiums Written $23,415,757 $14,997,015 $43,180,931 $29,780,863 Less-premiums for reinsurance ceded 93,128 125,818 190,317 228,941 ----------- ----------- ----------- ----------- Net premiums written 23,322,629 14,871,197 42,990,614 29,551,922 Investment income- interest and dividends 679,857 692,781 1,354,435 1,361,819 Net realized gain on sales of investments 41,867 5,043 64,914 290,850 Other 1,135,290 523,066 1,798,123 957,069 ----------- ----------- ----------- ----------- Total 25,179,643 16,092,087 46,208,086 32,161,660 ----------- ----------- ----------- ----------- Operating Expenses: Commissions to agents 11,462,988 6,767,083 20,855,778 13,776,762 Provision for claims 2,687,693 1,703,640 4,770,731 3,383,051 Salaries, employee benefits and payroll taxes 3,708,942 2,729,169 7,255,999 5,667,760 Office occupancy and operations 1,365,677 1,270,795 2,462,793 2,471,192 Business development 402,204 448,759 783,156 836,880 Taxes, other than payroll and income 121,159 115,357 175,282 191,594 Premium and retaliatory taxes 462,819 304,092 884,105 633,858 Professional fees 250,795 190,251 458,139 400,506 Other 147,914 67,343 199,845 105,280 ----------- ----------- ----------- ----------- Total 20,610,191 13,596,489 37,845,828 27,466,883 ----------- ----------- ----------- ----------- Income Before Income Taxes 4,569,452 2,495,598 8,362,258 4,694,777 ----------- ----------- ----------- ----------- Provision For Income Taxes 1,482,000 794,600 2,666,245 1,446,600 ----------- ----------- ----------- ----------- Net Income $ 3,087,452 $ 1,700,998 $ 5,696,013 $ 3,248,177 =========== =========== =========== =========== Basic Earnings Per Common Share $ 1.24 $ 0.68 $ 2.27 $ 1.29 =========== =========== =========== =========== Weighted Average Shares Outstanding - Basic 2,494,036 2,517,739 2,503,773 2,517,148 =========== =========== =========== =========== Diluted Earnings Per Common Share $ 1.18 $ 0.65 $ 2.18 $ 1.25 =========== =========== =========== =========== Weighted Average Shares Outstanding - Diluted 2,619,743 2,600,191 2,616,098 2,593,565 =========== =========== =========== =========== Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2003 and December 31, 2002 June 30, December 31, 2003 2002 (Unaudited) (Audited) ----------- ----------- Assets Cash and cash equivalents $ 9,826,555 $ 3,781,961 Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost 3,818,218 4,395,081 Available-for-sale, at fair value 50,588,858 52,491,648 Equity securities, at fair value 8,075,922 7,884,928 Other investments 1,106,990 564,782 ----------- ----------- Total investments 63,589,988 65,336,439 Premiums receivable, net 9,758,431 7,949,904 Accrued interest and dividends 674,478 720,902 Prepaid expenses and other assets 988,606 1,095,230 Property acquired in settlement of claims 771,687 749,562 Property, net 4,189,690 4,109,885 Deferred income taxes, net 633,577 893,263 ----------- ----------- Total Assets $90,433,012 $84,637,146 =========== =========== Liabilities and Stockholders' Equity Liabilities: Reserves for claims $27,522,000 $25,630,000 Accounts payable and accrued liabilities 3,223,177 4,780,865 Commissions and reinsurance payables 390,747 401,040 Premium taxes payable 234,423 268,972 Current income taxes payable 809,463 888,085 ----------- ----------- Total liabilities 32,179,810 31,968,962 ----------- ----------- Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,498,939 and 2,515,804 shares issued and outstanding 2003 and 2002, respectively, excluding 356,805 and 339,940 shares 2003 and 2002,respectively, of common stock held by the Company's subsidiary) 1 1 Retained earnings 54,627,963 49,613,044 Accumulated other comprehensive income (net unrealized gain on investments) 3,625,238 3,055,139 ----------- ----------- Total stockholders' equity 58,253,202 52,668,184 ----------- ----------- Total Liabilities and Stockholders' Equity $90,433,012 $84,637,146 =========== =========== Investors Title Company and Subsidiaries Net Premiums Written By State For the Six Months Ended June 30, 2003 and 2002 (Unaudited) 2003 2002 ------------------------------------------------------------------- Alabama $ 645,527 $ 275,440 Arkansas 18,170 7,638 District of Columbia 6,274 - Florida 25,150 - Georgia 27,639 1,836 Illinois 756,449 - Indiana 175,701 5,114 Kentucky 941,646 503,741 Louisiana 1,676 - Maryland 975,414 636,148 Michigan 4,394,450 4,419,751 Minnesota 1,093,748 652,130 Mississippi 565,025 413,665 Missouri 19,218 - Nebraska 1,163,552 387,291 New Jersey 41,266 11,943 New York 3,106,336 1,527,021 North Carolina 14,909,659 10,817,167 Ohio 65,129 11,673 Pennsylvania 3,297,694 1,551,870 South Carolina 3,272,382 2,616,019 Tennessee 2,029,754 1,521,794 Virginia 4,608,819 3,625,674 West Virginia 1,034,122 772,049 Wisconsin (100) 7,234 ------------- --------------- Direct Premiums 43,174,700 29,765,198 Reinsurance Assumed 6,231 15,665 Reinsurance Ceded (190,317) (228,941) ------------- --------------- Net Premiums Written $ 42,990,614 $ 29,551,922 ============= =============== Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency June 30, 2003 and 2002 (Unaudited) For The Three Months Ended June 30 ------------------------------------------------------------ 2003 % 2002 % ------------------------------------------------------------ Branch $7,996,257 34 $5,601,921 38 Agency 15,326,372 66 9,269,276 62 ------------------------------------------------------------ Total $23,322,629 100 $14,871,197 100 ============================================================ For The Six Months Ended June 30 ------------------------------------------------------------- 2003 % 2002 % ------------------------------------------------------------- Branch $14,997,950 35 $10,892,987 37 Agency 27,992,664 65 18,658,935 63 -------------------------------------------- ---------------- Total $42,990,614 100 $29,551,922 100 ============================================ ================ CONTACT: Investors Title Company Elizabeth P. Bryan, 919-968-2200