ITIC Investors Title Company

Investors Title Company today announced its results for the quarter ended March 31, 2010. The Company reported net income of $17,415, or $0.01 per diluted share, compared with $1,434,963, or $0.62 per diluted share, for the prior year period.

Total revenues decreased 26.7% to $13,697,411 versus the prior year period, primarily due to a 28.2% decrease in net premiums written. Although premiums resulting from purchase transactions increased versus the prior year period, a sharp decline in refinance premiums resulted in an overall unfavorable comparison. Investment income decreased 8.4% to $906,622 due to an overall unfavorable interest rate environment.

Operating expenses decreased 19.1% to $13,681,996 versus the prior year period, primarily due to a 25.7% decrease in commissions to agents commensurate with lower premium volume, and a 35.9% decrease in provision for claims resulting from both lower premium volumes and a slight improvement in the Company’s claims experience loss rate. In addition, salaries and related expenses were 12.7% lower compared with the prior year period as a result of a continued emphasis on expense management.

Chairman J. Allen Fine added, “The declining volume of mortgage refinancing activity was the primary influence on operating results in the quarter. After declining in late 2008, mortgage rates have remained in a relatively narrow range and we believe much of the anticipated refinancing has taken place. On a positive note we were pleased to see a modest reduction in our claims experience loss rate which resulted primarily from a reduction in mechanic liens from the prior year period.

The current operating environment remains challenging as overall mortgage origination continues to decline. We continue to monitor the market and search for opportunities to improve efficiency and expand our presence.”

Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides investment management services to individuals, companies, banks and trusts, as well as services in connection with tax-deferred 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. 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; 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, 2009, as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries Consolidated Statements of Income For the Three Months Ended March 31, 2010 and 2009 (Unaudited)   For The Three Months Ended March 31 2010 2009 Revenues: Underwriting income: Premiums Written $ 11,829,821 $ 16,410,597 Less-premiums for reinsurance ceded 43,519 777 Net premiums written 11,786,302 16,409,820 Investment income-interest and dividends 906,622 989,635 Net realized gain (loss) on investments 25,150 (299,937) Other 979,337 1,582,891 Total Revenues 13,697,411 18,682,409   Operating Expenses: Commissions to agents 5,599,451 7,532,209 Provision for claims 1,312,404 2,047,126 Salaries, employee benefits and payroll taxes 4,484,312 5,138,176 Office occupancy and operations 1,088,405 1,098,582 Business development 274,296 262,817 Filing fees and taxes, other than payroll and income 145,422 157,051 Premium and retaliatory taxes 300,946 367,262 Professional and contract labor fees 365,078 314,699 Other 111,682 (14,476) Total Operating Expenses 13,681,996 16,903,446   Income Before Income Taxes 15,415 1,778,963   (Benefit) Provision For Income Taxes (2,000) 344,000   Net Income $ 17,415 $ 1,434,963   Basic Earnings Per Common Share $ 0.01 $ 0.63   Weighted Average Shares Outstanding - Basic 2,285,134 2,293,951   Diluted Earnings Per Common Share $ 0.01 $ 0.62   Weighted Average Shares Outstanding - Diluted 2,295,164 2,296,041   Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2010 and December 31, 2009 (Unaudited)   March 31, 2010 December 31, 2009 Assets Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost $ - $ 2,000 Available-for-sale, at fair value 91,357,127 88,801,186 Equity securities, available-for-sale, at fair value 13,287,540 11,854,301 Short-term investments 20,095,531 20,717,434 Other investments 2,196,660 2,307,220 Total investments 126,936,858 123,682,141   Cash and cash equivalents 4,521,474 8,733,221 Premiums and fees receivable, net 4,448,951 5,170,476 Accrued interest and dividends 956,860 1,122,806 Prepaid expenses and other assets 1,747,437 1,815,653 Property acquired in settlement of claims 158,129 175,476 Property, net 3,824,017 3,894,724 Current income taxes receivable 706,026 - Deferred income taxes, net 1,085,707 1,833,207   Total Assets $ 144,385,459 $ 146,427,704   Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 38,830,000 $ 39,490,000 Accounts payable and accrued liabilities 8,188,773 9,008,337 Current income taxes payable - 670,290 Total liabilities 47,018,773 49,168,627   Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,285,486 and 2,285,289 shares issued and outstanding as of March 31, 2010 and December 31, 2009, respectively, excluding 291,676 shares for 2010 and 2009 of common stock held by the Company's subsidiary)     1 1 Retained earnings 92,396,850 92,528,818 Accumulated other comprehensive income 4,969,835 4,730,258 Total stockholders' equity 97,366,686 97,259,077   Total Liabilities and Stockholders' Equity $ 144,385,459 $ 146,427,704   Investors Title Company and Subsidiaries Net Premiums Written By State For the Three Months Ended March 31, 2010 and 2009 (Unaudited)   For The Three Months Ended March 31 2010 2009 Illinois $ 435,491 $ 1,091,590 Kentucky 630,798 870,303 Michigan 956,846 852,273 New York 401,560 955,437 North Carolina 4,921,704 7,564,207 Pennsylvania 451,627 609,185 South Carolina 1,369,186 1,185,930 Tennessee 497,838 565,768 Virginia 965,568 1,227,764 West Virginia 412,212 547,581 Other States 777,057 939,759 Direct Premiums 11,819,887 16,409,797 Reinsurance Assumed 9,934 800 Reinsurance Ceded (43,519) (777) Net Premiums Written $ 11,786,302 $ 16,409,820   Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency For the Three Months Ended March 31, 2010 and 2009 (Unaudited)     For The Three Months Ended March 31   2010 %   2009 % Branch $ 3,749,800 31.8 $ 6,043,004 36.8   Agency   8,036,502 68.2   10,366,816 63.2   Total $ 11,786,302 100 $ 16,409,820 100