J. Allen Fine, Chairman of Investors Title Company (NASDAQ:ITIC),
announced that for the third quarter ended September 30, 2006, the
Company reported net income of $3,672,069, a decrease of 15.2%
compared with $4,329,529 for the prior year period. Net income per
diluted share equaled $1.44, a decrease of 13.8% compared with
$1.67 per diluted share in the same period last year. Net premiums
written decreased 13.1% to $18,242,676 and revenues decreased 9.6%
to $21,722,334 compared with the prior year period. For the
nine-month period ended September 30, 2006, the Company reported
net income of $10,862,547, an increase of 11.2%, compared with
$9,772,021 for the same nine-month period in 2005. Diluted earnings
per share were $4.23, an increase of 13.1% compared with $3.74 for
the same nine-month period in 2005. Net premiums written decreased
7.1% to $53,997,893 and revenues decreased 1.8% to $65,027,803
compared with the prior year. Premiums written declined during the
latest reporting period as mortgage originations and real estate
activity continued to slow from the record levels of the prior
year. Slowing real estate sales also led to a decline in
tax-deferred exchange volume. Revenue in the exchange segment
increased due to higher rates of interest earned on funds. Also
slightly offsetting the decline in premium revenue was an increase
in investment income. Chairman Fine added �As generally expected,
transaction volume and mortgage loan origination has continued to
slow as a result of higher interest rates, inventory imbalances and
other market factors. We continue to monitor conditions in the real
estate market in order to best align expenditures with changing
activity levels, while looking for opportunities to extend our
distribution base and further improve operating efficiencies.�
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 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, 2005, as filed
with the Securities and Exchange Commission. Investors Title
Company and SubsidiariesConsolidated Statements of IncomeSeptember
30, 2006 and 2005(Unaudited) � For The Three For The Nine Months
Ended Months Ended September 30 September 30 2006� 2005� 2006�
2005� Revenues: Underwriting income: Premiums written $ 18,347,342�
$ 21,035,519� $ 54,315,786� $ 58,333,687� Less-premiums for
reinsurance ceded 104,666� 49,419� 317,893� 234,234� Net premiums
written 18,242,676� 20,986,100� 53,997,893� 58,099,453� Investment
income-interest and dividends 1,036,155� 812,659� 3,064,905�
2,373,983� Net realized gain (loss) on sales of investments
(55,930) 69,597� 488,527� 89,504� Exchange services revenue
1,604,992� 1,222,602� 4,541,081� 3,272,034� Other 894,441� 942,365�
2,935,397� 2,381,990� Total 21,722,334� 24,033,323� 65,027,803�
66,216,964� � Operating Expenses: Commissions to agents 6,796,146�
8,209,799� 20,368,864� 23,050,329� Provision for claims 1,992,901�
2,283,372� 5,878,592� 6,354,485� Salaries, employee benefits and
payroll taxes 4,901,427� 4,540,061� 14,824,296� 14,320,940� Office
occupancy and operations 1,247,299� 1,133,563� 3,978,654�
3,722,639� Business development 568,982� 591,506� 1,622,145�
1,483,367� Taxes, other than payroll and income 196,707� 67,234�
493,599� 387,218� Premium and retaliatory taxes 396,851� 411,084�
1,067,461� 1,204,399� Professional fees 554,487� 370,297�
1,879,643� 1,461,478� Other 92,435� 186,878� 531,002� 298,088�
Total 16,747,235� 17,793,794� 50,644,256� 52,282,943� � Income
Before Income Taxes 4,975,099� 6,239,529� 14,383,547� 13,934,021� �
Provision For Income Taxes 1,303,030� 1,910,000� 3,521,000�
4,162,000� � Net Income $ 3,672,069� $ 4,329,529� $ 10,862,547� $
9,772,021� � Basic Earnings Per Common Share $ 1.46� $ 1.69� $
4.29� $ 3.81� � Weighted Average Shares Outstanding - Basic
2,517,691� 2,559,154� 2,534,883� 2,562,247� � Diluted Earnings Per
Common Share $ 1.44� $ 1.67� $ 4.23� $ 3.74� � Weighted Average
Shares Outstanding - Diluted 2,550,607� 2,600,289� 2,569,585�
2,611,073� Investors Title Company and Subsidiaries Consolidated
Balance Sheets As of September 30, 2006 and December 31, 2005
(Unaudited) � September 30, 2006 December 31, 2005 Assets Cash and
cash equivalents $ 3,957,098� $ 14,608,481� � Investments in
securities: Fixed maturities: Held-to-maturity, at amortized cost
1,200,276� 1,648,708� Available-for-sale, at fair value 96,677,536�
75,472,342� Equity securities, available-for-sale at fair value
12,363,984� 9,437,678� Short-term investments 3,000,463� 7,257,734�
Other investments 1,629,631� 1,336,111� Total investments
114,871,890� 95,152,573� � Premiums and fees receivable, net
7,326,398� 7,818,558� Accrued interest and dividends 1,081,266�
1,010,198� Prepaid expenses and other assets 6,796,132� 1,592,326�
Property acquired in settlement of claims 417,800� 359,980�
Property, net 6,119,700� 5,466,765� Deferred income taxes, net
2,011,981� 2,462,647� � Total Assets $ 142,582,265� $ 128,471,528�
� Liabilities and Stockholders' Equity Liabilities: Reserves for
claims $ 36,477,000� $ 34,857,000� Accounts payable and accrued
liabilities 12,758,421� 7,928,384� Commissions and reinsurance
payables 353,362� 442,098� Current income taxes payable 126,255�
946,790� Total liabilities 49,715,038� 44,174,272� � Stockholders'
Equity: Common stock - no par value (shares authorized 10,000,000;
2,506,784 and 2,549,434 shares issued and outstanding 2006 and
2005, respectively, excluding 291,676 and 297,783 shares 2006 and
2005, respectively, of common stock held by the Company's
subsidiary) � � 1� 1� Retained earnings 90,002,406� 81,477,022�
Accumulated other comprehensive income (net unrealized gain on
investments) 2,864,820� 2,820,233� Total stockholders' equity
92,867,227� 84,297,256� � Total Liabilities and Stockholders'
Equity $ 142,582,265� $ 128,471,528� Investors Title Company and
Subsidiaries Net Premiums Written By State September 30, 2006 and
2005 (Unaudited) � For the Three Months Ended For the Nine Months
Ended September 30 September 30 State � 2006� � 2005� 2006� � 2005�
Alabama $ 185,318� $ 304,229� $ 759,499� $ 1,034,232� Florida
359,531� 410,075� 965,822� 1,182,015� Illinois 291,810� 244,111�
819,718� 735,441� Kentucky 618,829� 616,986� 1,775,866� 1,601,826�
Maryland 344,598� 471,464� 1,126,272� 1,331,992� Michigan 825,711�
1,229,606� 2,584,541� 3,614,984� Minnesota 200,469� 227,850�
842,538� 756,642� Mississippi 225,319� 249,728� 526,996� 811,321�
Nebraska 172,005� 212,204� 503,451� 597,899� New York 602,667�
998,587� 1,815,458� 2,358,964� North Carolina 9,185,274�
10,111,914� 27,400,208� 27,477,382� Pennsylvania 373,498� 460,000�
1,100,005� 1,287,648� South Carolina 2,045,816� 1,748,951�
4,984,670� 5,136,939� Tennessee 686,497� 775,812� 1,967,589�
2,066,396� Virginia 1,515,282� 2,078,630� 5,087,324� 6,032,643�
West Virginia 577,884� 728,273� 1,673,725� 1,740,338� Other States
135,101� 167,099� 373,945� 552,979� Direct Premiums 18,345,609�
21,035,519� 54,307,627� 58,319,641� Reinsurance Assumed 1,733� -�
8,159� 14,046� Reinsurance Ceded (104,666) (49,419) (317,893)
(234,234) Net Premiums Written $ 18,242,676� $ 20,986,100� $
53,997,893� $ 58,099,453� Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency September 30, 2006 and
2005 (Unaudited) � For The Three Months Ended For The Nine Months
Ended September 30 September 30 2006� % 2005� % 2006� % 2005� %
Branch $ 8,602,081� 47� $ 9,636,878� 46� $ 25,333,046� 47� $
26,017,989� 45� � Agency $ 9,640,595� 53� $ 11,349,222� 54� $
28,664,847� 53� $ 32,081,464� 55� � Total $ 18,242,676� 100� $
20,986,100� 100� $ 53,997,893� 100� $ 58,099,453� 100� J. Allen
Fine, Chairman of Investors Title Company (NASDAQ:ITIC), announced
that for the third quarter ended September 30, 2006, the Company
reported net income of $3,672,069, a decrease of 15.2% compared
with $4,329,529 for the prior year period. Net income per diluted
share equaled $1.44, a decrease of 13.8% compared with $1.67 per
diluted share in the same period last year. Net premiums written
decreased 13.1% to $18,242,676 and revenues decreased 9.6% to
$21,722,334 compared with the prior year period. For the nine-month
period ended September 30, 2006, the Company reported net income of
$10,862,547, an increase of 11.2%, compared with $9,772,021 for the
same nine-month period in 2005. Diluted earnings per share were
$4.23, an increase of 13.1% compared with $3.74 for the same
nine-month period in 2005. Net premiums written decreased 7.1% to
$53,997,893 and revenues decreased 1.8% to $65,027,803 compared
with the prior year. Premiums written declined during the latest
reporting period as mortgage originations and real estate activity
continued to slow from the record levels of the prior year. Slowing
real estate sales also led to a decline in tax-deferred exchange
volume. Revenue in the exchange segment increased due to higher
rates of interest earned on funds. Also slightly offsetting the
decline in premium revenue was an increase in investment income.
Chairman Fine added "As generally expected, transaction volume and
mortgage loan origination has continued to slow as a result of
higher interest rates, inventory imbalances and other market
factors. We continue to monitor conditions in the real estate
market in order to best align expenditures with changing activity
levels, while looking for opportunities to extend our distribution
base and further improve operating efficiencies." 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 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, 2005, as filed with the Securities and
Exchange Commission. -0- *T Investors Title Company and
Subsidiaries Consolidated Statements of Income September 30, 2006
and 2005 (Unaudited) For The Three For The Nine Months Ended Months
Ended September 30 September 30 ------------------------
------------------------ 2006 2005 2006 2005 -----------
----------- ----------- ----------- Revenues: Underwriting income:
Premiums written $18,347,342 $21,035,519 $54,315,786 $58,333,687
Less-premiums for reinsurance ceded 104,666 49,419 317,893 234,234
----------- ----------- ----------- ----------- Net premiums
written 18,242,676 20,986,100 53,997,893 58,099,453 Investment
income- interest and dividends 1,036,155 812,659 3,064,905
2,373,983 Net realized gain (loss) on sales of investments (55,930)
69,597 488,527 89,504 Exchange services revenue 1,604,992 1,222,602
4,541,081 3,272,034 Other 894,441 942,365 2,935,397 2,381,990
----------- ----------- ----------- ----------- Total 21,722,334
24,033,323 65,027,803 66,216,964 ----------- -----------
----------- ----------- Operating Expenses: Commissions to agents
6,796,146 8,209,799 20,368,864 23,050,329 Provision for claims
1,992,901 2,283,372 5,878,592 6,354,485 Salaries, employee benefits
and payroll taxes 4,901,427 4,540,061 14,824,296 14,320,940 Office
occupancy and operations 1,247,299 1,133,563 3,978,654 3,722,639
Business development 568,982 591,506 1,622,145 1,483,367 Taxes,
other than payroll and income 196,707 67,234 493,599 387,218
Premium and retaliatory taxes 396,851 411,084 1,067,461 1,204,399
Professional fees 554,487 370,297 1,879,643 1,461,478 Other 92,435
186,878 531,002 298,088 ----------- ----------- -----------
----------- Total 16,747,235 17,793,794 50,644,256 52,282,943
----------- ----------- ----------- ----------- Income Before
Income Taxes 4,975,099 6,239,529 14,383,547 13,934,021 -----------
----------- ----------- ----------- Provision For Income Taxes
1,303,030 1,910,000 3,521,000 4,162,000 ----------- -----------
----------- ----------- Net Income $ 3,672,069 $ 4,329,529
$10,862,547 $ 9,772,021 =========== =========== ===========
=========== Basic Earnings Per Common Share $ 1.46 $ 1.69 $ 4.29 $
3.81 =========== =========== =========== =========== Weighted
Average Shares Outstanding - Basic 2,517,691 2,559,154 2,534,883
2,562,247 =========== =========== =========== =========== Diluted
Earnings Per Common Share $ 1.44 $ 1.67 $ 4.23 $ 3.74 ===========
=========== =========== =========== Weighted Average Shares
Outstanding - Diluted 2,550,607 2,600,289 2,569,585 2,611,073
=========== =========== =========== =========== *T -0- *T Investors
Title Company and Subsidiaries Consolidated Balance Sheets As of
September 30, 2006 and December 31, 2005 (Unaudited) September 30,
December 31, 2006 2005 -------------- ------------ Assets Cash and
cash equivalents $ 3,957,098 $ 14,608,481 Investments in
securities: Fixed maturities: Held-to-maturity, at amortized cost
1,200,276 1,648,708 Available-for-sale, at fair value 96,677,536
75,472,342 Equity securities, available-for- sale at fair value
12,363,984 9,437,678 Short-term investments 3,000,463 7,257,734
Other investments 1,629,631 1,336,111 -------------- ------------
Total investments 114,871,890 95,152,573 Premiums and fees
receivable, net 7,326,398 7,818,558 Accrued interest and dividends
1,081,266 1,010,198 Prepaid expenses and other assets 6,796,132
1,592,326 Property acquired in settlement of claims 417,800 359,980
Property, net 6,119,700 5,466,765 Deferred income taxes, net
2,011,981 2,462,647 -------------- ------------ Total Assets $
142,582,265 $128,471,528 ============== ============ Liabilities
and Stockholders' Equity Liabilities: Reserves for claims $
36,477,000 $ 34,857,000 Accounts payable and accrued liabilities
12,758,421 7,928,384 Commissions and reinsurance payables 353,362
442,098 Current income taxes payable 126,255 946,790 --------------
------------ Total liabilities 49,715,038 44,174,272 --------------
------------ Stockholders' Equity: Common stock - no par value
(shares authorized 10,000,000; 2,506,784 and 2,549,434 shares
issued and outstanding 2006 and 2005, respectively, excluding
291,676 and 297,783 shares 2006 and 2005, respectively, of common
stock held by the Company's subsidiary) 1 1 Retained earnings
90,002,406 81,477,022 Accumulated other comprehensive income (net
unrealized gain on investments) 2,864,820 2,820,233 --------------
------------ Total stockholders' equity 92,867,227 84,297,256
-------------- ------------ Total Liabilities and Stockholders'
Equity $ 142,582,265 $128,471,528 ============== ============ *T
-0- *T Investors Title Company and Subsidiaries Net Premiums
Written By State September 30, 2006 and 2005 (Unaudited) For the
Three Months For the Nine Months Ended Ended September 30 September
30 ----------------------- ----------------------- State 2006 2005
2006 2005 ----------------------------------------------
----------------------- Alabama $ 185,318 $ 304,229 $ 759,499 $
1,034,232 Florida 359,531 410,075 965,822 1,182,015 Illinois
291,810 244,111 819,718 735,441 Kentucky 618,829 616,986 1,775,866
1,601,826 Maryland 344,598 471,464 1,126,272 1,331,992 Michigan
825,711 1,229,606 2,584,541 3,614,984 Minnesota 200,469 227,850
842,538 756,642 Mississippi 225,319 249,728 526,996 811,321
Nebraska 172,005 212,204 503,451 597,899 New York 602,667 998,587
1,815,458 2,358,964 North Carolina 9,185,274 10,111,914 27,400,208
27,477,382 Pennsylvania 373,498 460,000 1,100,005 1,287,648 South
Carolina 2,045,816 1,748,951 4,984,670 5,136,939 Tennessee 686,497
775,812 1,967,589 2,066,396 Virginia 1,515,282 2,078,630 5,087,324
6,032,643 West Virginia 577,884 728,273 1,673,725 1,740,338 Other
States 135,101 167,099 373,945 552,979 ----------- -----------
----------- ----------- Direct Premiums 18,345,609 21,035,519
54,307,627 58,319,641 Reinsurance Assumed 1,733 - 8,159 14,046
Reinsurance Ceded (104,666) (49,419) (317,893) (234,234)
----------- ----------- ----------- ----------- Net Premiums
Written $18,242,676 $20,986,100 $53,997,893 $58,099,453 ===========
=========== =========== =========== *T -0- *T Investors Title
Company and Subsidiaries Net Premiums Written By Branch and Agency
September 30, 2006 and 2005 (Unaudited) For The Three Months Ended
September 30
------------------------------------------------------- 2006 % 2005
% ------------------------------------------------------- Branch
$8,602,081 47 $9,636,878 46 Agency $9,640,595 53 $11,349,222 54
------------------------------------------------------- Total
$18,242,676 100 $20,986,100 100
======================================================= Investors
Title Company and Subsidiaries Net Premiums Written By Branch and
Agency September 30, 2006 and 2005 (Unaudited) For The Nine Months
Ended September 30
-------------------------------------------------------- 2006 %
2005 % --------------------------------------------------------
Branch $25,333,046 47 $26,017,989 45 Agency $28,664,847 53
$32,081,464 55
-------------------------------------------------------- Total
$53,997,893 100 $58,099,453 100
======================================================== *T
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