Investors Title Company (NASDAQ: ITIC) today announced record
revenues and net income for the fourth quarter ended December 31,
2005. The Company reported net income of $3,520,902, an increase of
30.9% compared with $2,689,303 for the fourth quarter of 2004.
Diluted earnings per share were $1.36 for the quarter ended
December 31, 2005 versus $1.03 for the prior year quarter. Net
premiums written increased 9.5% to $18,422,813 and total revenues
increased 12.5% to $21,646,914 compared with the fourth quarter of
2004. For the year ended December 31, 2005, the Company reported
record net income of $13,292,923, an increase of 24% compared with
2004. Diluted earnings per share were $5.10 versus $4.09 in the
prior year period. Net premiums written increased 6.5% to
$76,522,266 and total revenues increased 10% to $87,863,878
compared with 2004. "Net earnings for the period were the highest
for any fourth quarter," stated J. Allen Fine, Chairman of
Investors Title Company. "Operating results were driven by growth
in revenue and an increase in profit margin. Revenue in our title
insurance and 1031 exchange segments was favorably impacted by the
ongoing strength in real estate activity. Nationally, the pace of
existing home sales declined in the fourth quarter from earlier in
the year but remained above the prior year period. For 2005,
existing home sales hit a new record level for the fifth year in a
row." 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. 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. 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 December
31, 2005 and 2004 (Unaudited) For The Three For The Twelve Months
Ended Months Ended December 31 December 31 2005 2004 2005 2004
----------- ----------- ----------- ----------- Revenues:
Underwriting income: Premiums written $18,504,712 $16,918,555
$76,838,399 $72,138,084 Less-premiums for reinsurance ceded 81,899
93,821 316,133 294,639 ----------- ----------- -----------
----------- Net premiums written 18,422,813 16,824,734 76,522,266
71,843,445 Investment income- interest and dividends 961,784
830,323 3,335,767 2,752,838 Net realized gain on sales of
investments 29,511 53,989 119,015 93,656 Exchange services revenue
1,271,065 848,244 4,543,099 2,801,888 Other 961,741 682,506
3,343,731 2,349,349 ----------- ----------- ----------- -----------
Total 21,646,914 19,239,796 87,863,878 79,841,176 -----------
----------- ----------- ----------- Operating Expenses: Commissions
to agents 7,259,076 6,868,738 30,309,405 29,152,645 Provision for
claims 1,810,298 1,844,784 8,164,783 7,984,339 Salaries, employee
benefits and payroll taxes 4,815,158 4,084,329 19,136,098
16,303,351 Office occupancy and operations 1,358,190 1,364,134
5,080,829 4,849,944 Business development 590,151 575,219 2,073,518
1,899,315 Taxes, other than payroll and income 136,246 111,477
523,464 453,354 Premium and retaliatory taxes 352,130 326,444
1,556,529 1,406,083 Professional fees 475,755 593,904 1,937,233
2,074,520 Other 201,008 76,464 499,096 215,459 -----------
----------- ----------- ----------- Total 16,998,012 15,845,493
69,280,955 64,339,010 ----------- ----------- -----------
----------- Income Before Income Taxes 4,648,902 3,394,303
18,582,923 15,502,166 ----------- ----------- -----------
----------- Provision For Income Taxes 1,128,000 705,000 5,290,000
4,783,000 ----------- ----------- ----------- ----------- Net
Income $ 3,520,902 $ 2,689,303 $13,292,923 $10,719,166 ===========
=========== =========== =========== Basic Earnings Per Common Share
$ 1.38 $ 1.08 $ 5.19 $ 4.29 =========== =========== ===========
=========== Weighted Average Shares Outstanding - Basic 2,554,935
2,484,883 2,560,418 2,496,711 =========== =========== ===========
=========== Diluted Earnings Per Common Share $ 1.36 $ 1.03 $ 5.10
$ 4.09 =========== =========== =========== =========== Weighted
Average Shares Outstanding - Diluted 2,596,541 2,617,022 2,607,633
2,620,916 =========== =========== =========== =========== Investors
Title Company and Subsidiaries Consolidated Balance Sheets As of
December 31, 2005 and 2004 (Unaudited) December 31, December 31,
2005 2004 -------------------------- Assets Cash and cash
equivalents $ 14,608,481 $ 4,726,443 Investments in securities:
Fixed maturities: Held-to-maturity, at amortized cost 1,648,708
2,202,635 Available-for-sale, at fair value 75,472,342 72,471,766
Equity securities, available-for-sale at fair value 9,437,678
7,240,306 Short term investments 7,257,734 10,134,321 Other
investments 1,336,111 1,211,517 ------------ ------------ Total
investments 95,152,573 93,260,545 Premiums receivable, net
7,818,558 6,679,994 Accrued interest and dividends 1,010,198
753,638 Prepaid expenses and other assets 1,592,326 1,410,584
Property acquired in settlement of claims 359,980 322,517 Property,
net 5,466,765 4,592,784 Deferred income taxes, net 2,462,647
1,440,247 ------------ ------------ Total Assets $128,471,528
$113,186,752 ============ ============ Liabilities and
Stockholders' Equity Liabilities: Reserves for claims $ 34,857,000
$ 31,842,000 Accounts payable and accrued liabilities 7,928,384
7,919,651 Commissions and reinsurance payables 442,098 551,662
Current income taxes payable 946,790 366,168 ------------
------------ Total liabilities 44,174,272 40,679,481 ------------
------------ Stockholders' Equity: Common stock - no par value
(shares authorized 10,000,000; 2,549,434 and 2,481,024 shares
issued and outstanding 2005 and 2004, respectively, excluding
297,783 and 374,720 shares 2005 and 2004, respectively, of common
stock held by the Company's subsidiary) 1 1 Retained earnings
81,477,022 69,272,092 Accumulated other comprehensive income (net
unrealized gain on investments) 2,820,233 3,235,178 ------------
------------ Total stockholders' equity 84,297,256 72,507,271
------------ ------------ Total Liabilities and Stockholders'
Equity $128,471,528 $113,186,752 ============ ============
Investors Title Company and Subsidiaries Net Premiums Written By
State December 31, 2005 and 2004 (Unaudited) For the Three Months
For the Twelve Months Ended Ended December 31 December 31
----------------------- ----------------------- State 2005 2004
2005 2004 ----------------------------------------------
----------------------- Alabama $ 270,588 $ 350,050 $ 1,304,820 $
1,361,437 Florida 370,267 291,783 1,552,282 1,190,399 Illinois
264,832 205,655 1,000,273 948,022 Kentucky 513,753 392,093
2,115,579 1,710,387 Maryland 422,875 343,137 1,754,867 1,494,686
Michigan 976,655 1,107,046 4,591,639 4,896,239 Minnesota 319,513
233,323 1,076,155 1,063,819 Mississippi 166,074 231,529 977,395
990,203 Nebraska 148,615 174,547 746,514 783,398 New York 889,671
794,212 3,248,635 3,495,587 North Carolina 8,792,267 7,474,235
36,269,649 32,515,123 Pennsylvania 399,762 559,103 1,687,410
2,634,407 South Carolina 1,874,160 1,593,239 7,011,099 6,464,495
Tennessee 701,180 620,602 2,767,576 2,954,957 Virginia 1,708,028
1,857,365 7,740,671 7,038,474 West Virginia 505,804 470,672
2,246,142 1,864,216 Other States 173,738 214,001 726,717 726,272
----------- ----------- ----------- ----------- Direct Premiums
18,497,782 16,912,592 76,817,423 72,132,121 Reinsurance Assumed
6,930 5,963 20,976 5,963 Reinsurance Ceded (81,899) (93,821)
(316,133) (294,639) ----------- ----------- ----------- -----------
Net Premiums Written $18,422,813 $16,824,734 $76,522,266
$71,843,445 =========== =========== =========== ===========
Investors Title Company and Subsidiaries Net Premiums Written By
Branch and Agency December 31, 2005 and 2004 (Unaudited) For The
Three Months Ended For The Twelve Months Ended December 31 December
31 ----------------------------------------------------------------
2005 % 2004 % 2005 % 2004 % --------------- ---------------
--------------- --------------- Branch $ 8,090,934 44 $ 7,122,836
42 $34,108,923 45 $31,606,909 44 Agency 10,331,879 56 9,701,898 58
42,413,343 55 40,236,536 56 --------------- ---------------
--------------- --------------- Total $18,422,813 100 $16,824,734
100 $76,522,266 100 $71,843,445 100 =============== ===============
=============== =============== *T
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