ITIC Investors Title Company

J. Allen Fine, Chairman of Investors Title Company (NASDAQ: ITIC), announced that for the quarter ended March 31, 2007, the Company reported net income of $2,322,214, a decrease of 19% compared with $2,874,941 for the prior year period. Net income per diluted share equaled $0.92, a decrease of 17% compared with $1.11 per diluted share in the same period last year. Net premiums written increased 1% to $16,792,542 and revenues increased 1% to $20,333,769 compared with the prior year period. Revenues slightly exceeded the prior year period primarily due to an increase in investment income and to a lesser extent, an increase in net premiums written. Income in the exchange segment also increased principally due to an increase in interest earned on exchange funds. Profit margins and net income declined due to a decrease in the net realized gain on sales of investments and a 6% increase in operating expenses. The increase in operating expenses was primarily the result of an increase in commissions to agents due to an increase in agent premiums. Also contributing to the increase in operating expenses was a small overall increase in salaries and employee benefits. Chairman Fine added, �Overall, we are pleased with our results for the quarter, which is typically a seasonally slow period of the year. We remain focused on identifying opportunities to extend our distribution base, operate more efficiently and expand our business lines.� 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 and investment management services to individuals, companies, banks and trusts. 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, 2006, as filed with the Securities and Exchange Commission. Investors Title Company and Subsidiaries Consolidated Statements of Income March 31, 2007 and 2006 (Unaudited) � For The Three Months Ended March 31 2007� 2006� Revenues: Underwriting income: Premiums Written $ 16,874,977� $ 16,746,269� Less-premiums for reinsurance ceded 82,435� 114,643� Net premiums written 16,792,542� 16,631,626� Investment income-interest and dividends 1,209,607� 994,054� Net realized gain on sales of investments 166,180� 561,647� Exchange services revenue 1,245,479� 1,027,732� Other 919,961� 963,789� Total Revenues 20,333,769� 20,178,848� � Operating Expenses: Commissions to agents 6,845,288� 6,283,396� Provision for claims 1,809,433� 1,855,279� Salaries, employee benefits and payroll taxes 5,274,375� 5,005,847� Office occupancy and operations 1,436,123� 1,465,313� Business development 523,182� 505,658� Filing fees and taxes, other than payroll and income 165,213� 150,858� Premium and retaliatory taxes 441,920� 342,068� Professional and contract labor fees 645,010� 587,622� Other 222,011� 218,866� ` Total Operating Expenses 17,362,555� 16,414,907� � Income Before Income Taxes 2,971,214� 3,763,941� � Provision For Income Taxes 649,000� 889,000� � Net Income $ 2,322,214� $ 2,874,941� � Basic Earnings Per Common Share $ 0.93� $ 1.13� � Weighted Average Shares Outstanding - Basic 2,499,035� 2,549,070� � Diluted Earnings Per Common Share $ 0.92� $ 1.11� � Weighted Average Shares Outstanding - Diluted 2,535,858� 2,586,465� Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2007 and December 31, 2006 (Unaudited) � March 31, 2007 Dec. 31, 2006 Assets Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost $ 1,193,959� $ 1,195,617� Available-for-sale, at fair value 104,236,975� 101,954,292� Equity securities, available-for-sale at fair value 12,677,136� 12,495,923� Short-term investments 2,122,879� 4,460,911� Other investments 1,623,036� 1,473,303� Total investments 121,853,985� 121,580,046� � Cash and cash equivalents 3,414,489� 3,458,432� � Premiums and fees receivable, net 6,792,739� 6,693,706� Accrued interest and dividends 1,204,662� 1,336,790� Prepaid expenses and other assets 1,692,953� 1,479,366� Property acquired in settlement of claims 303,538� 303,538� Property, net 5,910,789� 6,134,304� Deferred income taxes, net 2,308,436� 2,530,196� � Total Assets $ 143,481,591� $ 143,516,378� � Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 37,133,000� $ 36,906,000� Accounts payable and accrued liabilities 9,522,465� 10,537,992� Commissions and reinsurance payables 242,617� 470,468� Current income taxes payable 333,704� 326,255� Total liabilities 47,231,786� 48,240,715� � Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,486,352 and 2,507,325 shares issued and outstanding 2007 and 2006, respectively, excluding 291,676 shares for 2007 and 2006 of common stock held by the Company's subsidiary) � � 1� 1� Retained earnings 93,213,418� 92,134,608� Accumulated other comprehensive income 3,036,386� 3,141,054� Total stockholders' equity 96,249,805� 95,275,663� � Total Liabilities and Stockholders' Equity $ 143,481,591� $ 143,516,378� Investors Title Company and Subsidiaries Net Premiums Written By State For the Three Months Ended March 31, 2007 and 2006 (Unaudited) � � � 2007� � 2006� Alabama $ 139,360� $ 243,636� Florida 828,547� 278,335� Illinois 388,957� 247,895� Kentucky 549,690� 573,498� Maryland 286,871� 373,769� Michigan 779,325� 877,309� Minnesota 118,682� 337,169� Mississippi 263,842� 134,452� Nebraska 173,324� 134,310� New York 506,759� 503,596� North Carolina 7,913,473� 8,441,482� Pennsylvania 326,654� 315,912� South Carolina 1,716,400� 1,402,073� Tennessee 649,390� 666,323� Virginia 1,560,504� 1,674,103� West Virginia 467,925� 455,418� Other States 198,344� 80,563� Direct Premiums 16,868,047� 16,739,843� Reinsurance Assumed 6,930� 6,426� Reinsurance Ceded (82,435) (114,643) Net Premiums Written $ 16,792,542� $ 16,631,626� Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency March 31, 2007 and 2006 (Unaudited) � � � For The Three Months Ended March 31 � 2007� % � 2006� % Branch $ 7,133,311� 42� $ 7,727,025� 46� � Agency � 9,659,231� 58� � 8,904,601� 54� � Total $ 16,792,542� 100� $ 16,631,626� 100�