EX-99.1 2 a6087017ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

Investors Title Company Announces Third Quarter 2009 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--October 30, 2009--J. Allen Fine, Chairman of Investors Title Company, announced that for the third quarter ended September 30, 2009, the Company reported net income of $969,043, an increase of 5.7% compared with net income of $917,033 for the same three-month period in 2008. Net income per diluted share equaled $0.42 compared with net income per diluted share of $0.39 in the same period last year. Net premiums written decreased 6.8% to $14,282,615, investment income decreased 15.5% to $911,982 and total revenues decreased 7.0% to $16,362,617 compared with the prior year period.

For the nine-month period ended September 30, 2009, the Company reported net income of $4,519,479, an increase of 63.3%, compared with $2,767,479 for the same nine-month period in 2008. Diluted earnings per share were $1.96, an increase of 70.4% compared with $1.15 for the same nine-month period in 2008. Net premiums written decreased 3.3% to $49,604,823, investment income decreased 17.6% to $2,862,071 and total revenues decreased 3.6% to $56,665,585 compared with the prior year period. Operating results for the quarter ended September 30, 2009 showed improvement over the same period in 2008 primarily due to cost containment efforts and a reduction in payroll expenses. The provision for claims declined slightly from the prior year period but increased as a percentage of premiums written, due in part to the ongoing elevated pace of mortgage foreclosures.

“Premiums written benefited from an increase in the level of purchase transactions as home buyers took advantage of very low mortgage interest rates as well as various government stimulus programs, including a tax credit for first time buyers,” Chairman Fine added. “The level of mortgage refinance transactions insured declined from the first and second quarters of the year; however, refinance transactions remain a significant block of business. We continue to search for and work on opportunities to develop our distribution network but remain guarded in expectations for near term transaction volume.” Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides services in connection with tax-deferred exchanges of like-kind property and investment management services to individuals, companies, banks and trusts.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include any predictions regarding activity in the U.S. real estate market. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions; mechanic lien claims; declines in the performance of the Company’s investments; government regulation; and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2009 and 2008
(Unaudited)
 
 
Three Months Ended
September 30 		Nine Months Ended
September 30
2009 2008 2009 2008
Revenues:
Underwriting income:
Premiums Written $ 14,306,677 $ 15,410,424 $ 49,662,835 $ 51,493,078
Less-premiums for reinsurance ceded 24,062   78,604   58,012   219,916  
Net premiums written 14,282,615 15,331,820 49,604,823 51,273,162
Investment income-interest and dividends 911,982 1,079,760 2,862,071 3,471,800
Net realized loss on investments (110,818 ) (545,883 ) (400,760 ) (669,586 )
Exchange services revenue 175,608 542,528 800,335 1,013,940
Other 1,103,230   1,188,338   3,799,116   3,720,966  
Total Revenues 16,362,617   17,596,563   56,665,585   58,810,282  
 
Operating Expenses:
Commissions to agents 6,838,090 6,707,688 23,202,041 21,976,896
Provision for claims 1,934,459 1,982,822 6,733,399 8,329,832
Salaries, employee benefits and payroll taxes 4,195,751 5,253,705 13,862,993 16,063,267
Office occupancy and operations 985,769 1,143,219 3,292,491 3,840,407
Business development 336,481 569,404 928,309 1,622,736
Filing fees and taxes, other than payroll and income 204,819 92,608 547,074 424,112
Premium and retaliatory taxes 270,352 210,233 1,013,124 1,029,298
Professional and contract labor fees 330,960 383,156 982,948 1,431,826
Other 173,893   248,695   363,727   762,429  
Total Operating Expenses 15,270,574   16,591,530   50,926,106   55,480,803  
 
Income Before Income Taxes 1,092,043   1,005,033   5,739,479   3,329,479  
 
Provision For Income Taxes 123,000   88,000   1,220,000   562,000  
 
Net Income $ 969,043   $ 917,033   $ 4,519,479   $ 2,767,479  
 
Basic Earnings Per Common Share $ 0.42   $ 0.39   $ 1.97   $ 1.16  
 
Weighted Average Shares Outstanding - Basic 2,290,666   2,342,643   2,293,754   2,388,115  
 
Diluted Earnings Per Common Share $ 0.42   $ 0.39   $ 1.96   $ 1.15  
 
Weighted Average Shares Outstanding - Diluted 2,295,757   2,360,533   2,300,686   2,409,747  
 
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2009 and December 31, 2008
(Unaudited)
 

September 30, 2009

December 31, 2008
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost $ 197,509

 

$

451,681
Available-for-sale, at fair value 89,334,159 87,708,500
Equity securities, available-for-sale, at fair value 11,672,102 9,965,297
Short-term investments 17,391,875 15,725,513
Other investments 2,221,506 2,040,962
Total investments 120,817,151 115,891,953
 
Cash and cash equivalents 8,817,941 5,155,046
Premiums and fees receivable, net 5,970,676 4,933,797
Accrued interest and dividends 958,506 1,225,070
Prepaid expenses and other assets 4,231,710 3,992,975
Property acquired in settlement of claims 285,376 395,734
Property, net 4,018,601 4,422,318
Deferred income taxes, net 348,367 3,841,295
 
Total Assets $ 145,448,328 $ 139,858,188
 
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 39,426,000 $ 39,238,000
Accounts payable and accrued liabilities 8,551,682 10,762,300
Total liabilities 47,977,682 50,000,300
 
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000; 2,286,222 and 2,293,268 shares issued and outstanding 2009 and 2008, respectively, excluding 291,676 shares for 2009 and 2008 of common stock held by the Company's subsidiary)
 
 
1 1
Retained earnings 92,372,351 88,248,452
Accumulated other comprehensive income 5,098,294 1,609,435
Total stockholders' equity 97,470,646 89,857,888
 
Total Liabilities and Stockholders' Equity $ 145,448,328 $ 139,858,188
 
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three and Nine Months Ended September 30, 2009 and 2008
(Unaudited)
       
Three Months Ended Nine Months Ended
September 30 September 30
State   2009     2008     2009     2008
Illinois $ 478,044 $ 429,954 $ 2,335,265 $ 1,584,507
Kentucky 713,474 761,945 2,533,651 2,393,886
Michigan 1,123,194 781,939 3,753,889 2,732,501
New York 523,629 472,152 2,359,472 1,670,039
North Carolina 6,000,363 7,305,962 21,857,728 25,022,108
Pennsylvania 588,988 423,695 2,074,806 1,388,971
South Carolina 1,690,176 1,962,189 4,222,027 5,878,324
Tennessee 610,055 564,210 1,928,614 1,719,884
Virginia 1,226,751 1,492,819 3,927,202 4,701,446
West Virginia 572,892 504,672 1,730,612 1,617,107
Other 771,761 709,837 2,931,419 2,686,711
Direct Premiums $ 14,299,327 $ 15,409,374 $ 49,654,685 $ 51,395,484
Reinsurance Assumed 7,350 1,050 8,150 97,594
Reinsurance Ceded (24,062) (78,604) (58,012) (219,916)
Net Premiums Written $ 14,282,615 $ 15,331,820 $ 49,604,823 $ 51,273,162
 
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Nine Months Ended September 30, 2009 and 2008
(Unaudited)
                     
 
Three Months Ended
September 30 		Nine Months Ended
September 30
2009   %   2008   % 2009   %   2008   %
Branch $ 4,680,845 33 $ 5,685,856 37 $ 17,380,223 35 $ 19,951,977 39
 
Agency   9,601,770 67     9,645,964 63   32,224,600 65     31,321,185 61
 
Total $ 14,282,615   100   $ 15,331,820   100 $ 49,604,823   100   $ 51,273,162   100

CONTACT:
Investors Title Company
Elizabeth B. Lewter, 919-968-2200