Investors Title Company (NASDAQ:ITIC) today announced results for
the third quarter ended September 30, 2005. The Company reported
net income of $4,329,529, an increase of 47.9% compared with
$2,927,864 for the third quarter of 2004. Diluted earnings per
share were $1.67 for the quarter ended September 30, 2005 versus
$1.12 for the prior year quarter. Net premiums written increased
14.3% to $20,986,100 and total revenues increased 17.2% to
$24,033,323 compared with the third quarter of 2004. For the
nine-month period ended September 30, 2005, the Company reported
net income of $9,772,021, an increase of 21.7% compared with the
same nine-month period in 2004. Diluted earnings per share were
$3.74 versus $3.06 in the prior year period. Net premiums written
increased 5.6% to $58,099,453 and total revenues increased 9.3% to
$66,216,964 compared with the same nine-month period in 2004. "Net
earnings for the period represent the second consecutive all time
new high reported for any quarter of the Company's operating
history", stated J. Allen Fine, Chairman of Investors Title
Company. "The overall low level of interest rates continued to fuel
strong demand for real estate during the third quarter. Although
mortgage rates trended slightly higher as the quarter progressed,
activity for the period remained strong. Strength in the real
estate markets of our operating territories drove the increases in
revenue for both our title insurance and Section 1031 exchange
operating segments. Revenue was also favorably impacted by an
increase in investment income, resulting primarily from higher
rates of interest earned on short-term investments." 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 September 30, 2005 and 2004 (Unaudited) For The Three For
The Nine Months Ended Months Ended September 30 September 30
------------------------ ----------------------- 2005 2004 2005
2004 ----------- ----------- ----------- ----------- Revenues:
Underwriting income: Premiums written $21,035,519 $18,391,953
$58,333,687 $55,219,529 Less-premiums for reinsurance ceded 49,419
37,510 234,234 200,818 ----------- ----------- -----------
----------- Net premiums written 20,986,100 18,354,443 58,099,453
55,018,711 Investment income- interest and dividends 812,659
603,584 2,373,983 1,922,515 Net realized gain on sales of
investments 69,597 19,280 89,504 39,667 Exchange services revenue
1,222,602 931,446 3,272,034 1,953,644 Other 942,365 594,571
2,381,990 1,666,843 ----------- ----------- ----------- -----------
Total 24,033,323 20,503,324 66,216,964 60,601,380 -----------
----------- ----------- ----------- Operating Expenses: Commissions
to agents 8,209,799 7,372,112 23,050,329 22,283,907 Provision for
claims 2,283,372 2,110,152 6,354,485 6,139,555 Salaries, employee
benefits and payroll taxes 4,540,061 4,042,857 14,320,940
12,219,022 Office occupancy and operations 1,320,550 1,294,766
4,353,434 3,821,521 Business development 591,506 447,159 1,483,367
1,324,096 Taxes, other than payroll and income 67,234 42,823
387,218 341,877 Premium and retaliatory taxes 411,084 357,244
1,204,399 1,079,639 Professional fees 183,310 336,919 830,683
1,144,905 Other 186,878 84,428 298,088 138,995 -----------
----------- ----------- ----------- Total 17,793,794 16,088,460
52,282,943 48,493,517 ----------- ----------- -----------
----------- Income Before Income Taxes 6,239,529 4,414,864
13,934,021 12,107,863 ----------- ----------- -----------
----------- Provision For Income Taxes 1,910,000 1,487,000
4,162,000 4,078,000 ----------- ----------- ----------- -----------
Net Income $ 4,329,529 $ 2,927,864 $ 9,772,021 $ 8,029,863
=========== =========== =========== =========== Basic Earnings Per
Common Share $ 1.69 $ 1.17 $ 3.81 $ 3.21 =========== ===========
=========== =========== Weighted Average Shares Outstanding - Basic
2,559,154 2,493,786 2,562,247 2,500,654 =========== ===========
=========== =========== Diluted Earnings Per Common Share $ 1.67 $
1.12 $ 3.74 $ 3.06 =========== =========== =========== ===========
Weighted Average Shares Outstanding - Diluted 2,600,289 2,608,160
2,611,073 2,621,922 =========== =========== =========== ===========
Investors Title Company and Subsidiaries Consolidated Balance
Sheets As of September 30, 2005 and December 31, 2004 (Unaudited)
September 30, December 31, 2005 2004 ---------------------------
Assets Cash and cash equivalents $ 6,165,400 $ 4,726,443
Investments in securities: Fixed maturities: Held-to-maturity, at
amortized cost 1,703,724 2,202,635 Available-for-sale, at fair
value 62,511,297 72,471,766 Equity securities, available-for-sale
at fair value 7,962,143 7,240,306 Short-term investments 25,825,270
10,134,321 Other investments 1,346,311 1,211,517 -------------
------------ Total investments 99,348,745 93,260,545 Premiums
receivable, net 8,958,003 6,679,994 Accrued interest and dividends
750,600 753,638 Prepaid expenses and other assets 2,005,707
1,410,584 Property acquired in settlement of claims 355,008 322,517
Property, net 4,417,201 4,592,784 Deferred income taxes, net
1,431,563 1,440,247 ------------- ------------ Total Assets $
123,432,227 $113,186,752 ============= ============ Liabilities and
Stockholders' Equity Liabilities: Reserves for claims $ 34,308,000
$ 31,842,000 Accounts payable and accrued liabilities 7,130,514
7,919,651 Commissions and reinsurance payables 547,394 551,662
Current income taxes payable 193,410 366,168 -------------
------------ Total liabilities 42,179,318 40,679,481 -------------
------------ Stockholders' Equity: Common stock - no par value
(shares authorized 10,000,000; 2,557,711 and 2,481,024 shares
issued and outstanding 2005 and 2004, respectively, excluding
298,033 and 374,720 shares 2005 and 2004, respectively, of common
stock held by the Company's subsidiary) 1 1 Retained earnings
78,369,004 69,272,092 Accumulated other comprehensive income (net
unrealized gain on investments) 2,883,904 3,235,178 -------------
------------ Total stockholders' equity 81,252,909 72,507,271
------------- ------------ Total Liabilities and Stockholders'
Equity $ 123,432,227 $113,186,752 Investors Title Company and
Subsidiaries Net Premiums Written By State September 30, 2005 and
2004 (Unaudited) For the Three Months For the Nine Months Ended
Ended September 30 September 30 -----------------------
----------------------- State 2005 2004 2005 2004
----------------------------------------------
----------------------- Alabama $ 304,229 $ 297,717 $ 1,034,232 $
1,011,387 Florida 410,075 243,128 1,182,015 898,616 Illinois
244,111 193,245 735,441 742,367 Kentucky 616,986 449,086 1,601,826
1,318,294 Maryland 471,464 414,501 1,331,992 1,151,549 Michigan
1,229,606 1,208,766 3,614,984 3,789,193 Minnesota 227,850 312,912
756,642 830,496 Mississippi 249,728 245,857 811,321 758,674
Nebraska 212,204 153,045 597,899 608,851 New York 998,587 869,203
2,358,964 2,701,375 North Carolina 10,111,914 8,439,442 27,477,382
25,040,888 Pennsylvania 460,000 615,729 1,287,648 2,075,304 South
Carolina 1,748,951 1,625,811 5,136,939 4,871,256 Tennessee 775,812
750,156 2,066,396 2,334,355 Virginia 2,078,630 1,860,509 6,032,643
5,181,109 West Virginia 728,273 530,463 1,740,338 1,393,544 Other
States 167,099 182,383 552,979 512,271 ----------- -----------
----------- ----------- Direct Premiums 21,035,519 18,391,953
58,319,641 55,219,529 Reinsurance Assumed - - 14,046 - Reinsurance
Ceded (49,419) (37,510) (234,234) (200,818) ----------- -----------
----------- ----------- Net Premiums Written $20,986,100
$18,354,443 $58,099,453 $55,018,711 =========== ===========
=========== =========== Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency September 30, 2005 and
2004 (Unaudited) For The Three Months Ended September 30
---------------------------------------------- 2005 % 2004 %
---------------------------------------------- Branch $9,636,878 46
$8,163,258 44 Agency 11,349,222 54 10,191,185 56
---------------------------------------------- Total $20,986,100
100 $18,354,443 100 ==============================================
For The Nine Months Ended September 30
-------------------------------------------- 2005 % 2004 %
-------------------------------------------- Branch $26,017,989 45
$24,484,073 45 Agency 32,081,464 55 30,534,638 55
-------------------- ----------------------- Total $58,099,453 100
$55,018,711 100 ==================== ======================= *T
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