Investors Title Company (NASDAQ:ITIC) today announced results for
the second quarter ended June 30, 2005. The Company reported net
income of $3,861,998, an increase of 34% compared with $2,880,395
for the second quarter of 2004. Diluted earnings per share were
$1.48 for the quarter ended June 30, 2005 versus $1.10 for the
prior year quarter. Net premiums written increased 1.7% to
$20,006,395 and total revenues increased 6.4% to $22,854,062
compared with the second quarter of 2004. For the six-month period
ended June 30, 2005, the Company reported net income of $5,442,492,
an increase of 6.7% compared with the same six-month period in
2004. Diluted earnings per share were $2.08 versus $1.94 in the
prior year period. Net premiums written increased 1.2% to
$37,113,353 and total revenues increased 5.2% to $42,183,641
compared with the same six-month period in 2004. "Our net earnings
represent an all time high for any quarter in the Company's
history", stated J. Allen Fine, Chairman of Investors Title
Company. "Ongoing low interest rates continue to fuel high volumes
of purchase transactions in residential and commercial property.
This strength in the real estate market has favorably impacted
revenue growth in our title insurance and 1031 exchange divisions,
largely offsetting the decline in mortgage refinance lending. We
continue to look for opportunities to expand market share and to
identify areas in internal operations where we can improve
operating efficiencies." 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 29 branch offices and a network
of agents located across 23 states and the District of Columbia.
The Company also provides services in connection with tax-deferred
exchanges of like-kind property as well as investment management
services to individuals, trusts, foundations and businesses.
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, 2004, as filed with the Securities and Exchange
Commission. -0- *T Investors Title Company and Subsidiaries
Consolidated Statements of Income June 30, 2005 and 2004
(Unaudited) For The Three For The Six Months Ended Months Ended
June 30 June 30 ----------------------- -----------------------
2005 2004 2005 2004 ----------- ----------- ----------- -----------
Revenues: Underwriting income: Premiums Written $20,052,131
$19,763,410 $37,298,168 $36,827,576 Less-premiums for reinsurance
ceded 45,736 93,782 184,815 163,308 ----------- -----------
----------- ----------- Net premiums written 20,006,395 19,669,628
37,113,353 36,664,268 Investment income- interest and dividends
808,559 662,556 1,561,324 1,318,931 Net realized gain on sales of
investments 30,801 16,956 19,907 20,387 Exchange services revenue
1,239,793 542,304 2,049,432 1,022,198 Other 768,514 590,043
1,439,625 1,072,272 ----------- ----------- ----------- -----------
Total 22,854,062 21,481,487 42,183,641 40,098,056 -----------
----------- ----------- ----------- Operating Expenses: Commissions
to agents 7,848,781 7,913,200 14,840,530 14,911,795 Provision for
claims 2,172,108 2,185,024 4,071,113 4,029,403 Salaries, employee
benefits and payroll taxes 4,413,567 4,328,260 9,780,879 8,176,165
Office occupancy and operations 1,520,794 1,322,957 3,032,884
2,526,755 Business development 464,388 523,523 891,861 876,937
Taxes, other than payroll and income 209,230 97,940 319,984 299,054
Premium and retaliatory taxes 393,770 389,391 793,315 722,395
Professional fees 372,327 397,311 647,373 807,986 Other 66,099
16,693 111,210 54,567 ----------- ----------- -----------
----------- Total 17,461,064 17,174,299 34,489,149 32,405,057
----------- ----------- ----------- ----------- Income Before
Income Taxes 5,392,998 4,307,188 7,694,492 7,692,999 -----------
----------- ----------- ----------- Provision For Income Taxes
1,531,000 1,426,793 2,252,000 2,591,000 ----------- -----------
----------- ----------- Net Income $ 3,861,998 $ 2,880,395 $
5,442,492 $ 5,101,999 =========== =========== ===========
=========== Basic Earnings Per Common Share $ 1.51 $ 1.15 $ 2.12 $
2.04 =========== =========== =========== =========== Weighted
Average Shares Outstanding - Basic 2,563,094 2,502,807 2,563,793
2,504,088 =========== =========== =========== =========== Diluted
Earnings Per Common Share $ 1.48 $ 1.10 $ 2.08 $ 1.94 ===========
=========== =========== =========== Weighted Average Shares
Outstanding - Diluted 2,607,611 2,618,477 2,616,418 2,628,431
=========== =========== =========== =========== Investors Title
Company and Subsidiaries Consolidated Balance Sheets As of June 30,
2005 and December 31, 2004 (Unaudited) June 30, December 31, 2005
2004 -------------------------- Assets Cash and cash equivalents $
5,660,399 $ 4,726,443 Investments in securities: Fixed maturities:
Held-to-maturity, at amortized cost 1,755,475 2,202,635
Available-for-sale, at fair value 64,777,760 72,471,766 Equity
securities, available-for-sale at fair value 7,569,599 7,240,306
Short-term investments 19,668,548 10,134,321 Other investments
1,453,477 1,211,517 ------------ ------------ Total investments
95,224,859 93,260,545 Premiums receivable, net 8,236,391 6,679,994
Accrued interest and dividends 865,290 753,638 Prepaid expenses and
other assets 1,845,425 1,410,584 Property acquired in settlement of
claims 261,317 322,517 Property, net 4,388,426 4,592,784 Deferred
income taxes, net 1,307,177 1,440,247 ------------ ------------
Total Assets $117,789,284 $113,186,752 ============ ============
Liabilities and Stockholders' Equity Liabilities: Reserves for
claims $ 33,149,000 $ 31,842,000 Accounts payable and accrued
liabilities 5,976,355 7,919,651 Commissions and reinsurance
payables 476,833 551,662 Current income taxes payable 356,030
366,168 ------------ ------------ Total liabilities 39,958,218
40,679,481 ------------ ------------ Stockholders' Equity: Common
stock - no par value (shares authorized 10,000,000; 2,564,458 and
2,481,024 shares issued and outstanding 2005 and 2004,
respectively, excluding 291,286 and 374,720 shares 2005 and 2004,
respectively, of common stock held by the Company's subsidiary) 1 1
Retained earnings 74,644,650 69,272,092 Accumulated other
comprehensive income (net unrealized gain on investments) 3,186,415
3,235,178 ------------ ------------ Total stockholders' equity
77,831,066 72,507,271 ------------ ------------ Total Liabilities
and Stockholders' Equity $117,789,284 $113,186,752 ============
============ Investors Title Company and Subsidiaries Net Premiums
Written By State June 30, 2005 and 2004 (Unaudited) For the Three
Months For the Six Months Ended Ended June 30 June 30
----------------------- ----------------------- State 2005 2004
2005 2004 --------------------- ------------------------
----------------------- Alabama $ 379,273 $ 385,354 $ 730,003 $
713,670 Florida 462,331 299,884 771,940 655,488 Illinois 278,550
285,394 491,330 549,122 Kentucky 545,873 469,178 984,840 869,208
Maryland 487,882 402,188 860,528 737,048 Michigan 1,273,971
1,357,627 2,385,378 2,580,427 Minnesota 259,992 271,224 528,792
517,584 Mississippi 298,242 266,542 561,593 512,817 Nebraska
180,377 236,882 385,695 455,806 New York 774,372 1,015,832
1,360,377 1,832,172 North Carolina 9,606,689 8,999,926 17,365,468
16,601,446 Pennsylvania 448,823 884,749 827,648 1,459,575 South
Carolina 1,340,095 1,471,548 3,387,988 3,245,445 Tennessee 722,736
873,284 1,290,584 1,584,199 Virginia 2,211,161 1,872,162 3,954,013
3,320,600 West Virginia 582,511 488,153 1,012,065 863,081 Other
199,253 183,483 385,880 329,888 ----------- ----------- -----------
----------- Direct Premiums 20,052,131 19,763,410 37,284,122
36,827,576 Reinsurance Assumed - - 14,046 - Reinsurance Ceded
(45,736) (93,782) (184,815) (163,308) ----------- -----------
----------- ----------- Net Premiums Written $20,006,395
$19,669,628 $37,113,353 $36,664,268 =========== ===========
=========== =========== Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency June 30, 2005 and 2004
(Unaudited) For The Three Months Ended For The Six Months Ended
June 30 June 30
----------------------------------------------------------------
2005 % 2004 % 2005 % 2004 %
----------------------------------------------------------------
Branch $9,131,282 46 $8,848,520 45 $16,381,111 44 $16,320,815 45
Agency 10,875,113 54 10,821,108 55 20,732,242 56 20,343,453 55
----------------------------------------------------------------
Total $20,006,395 100 $19,669,628 100 $37,113,353 100 $36,664,268
100
================================================================ *T
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