CHAPEL HILL, N.C., Nov. 6, 2008 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the third quarter ended September 30, 2008, the Company reported net income of $917,033, a decrease of 76.2%, compared with net income of $3,857,892 for the same three-month period in 2007. Net income per diluted share equaled $0.39 compared with $1.54 in the same period last year. Net premiums written decreased 19.3% to $15,331,820, investment income decreased 17.1% to $1,079,760 and revenues decreased 23.7% to $17,596,563 compared with the prior year period.
For the nine-month period ended September 30, 2008, the Company reported net income of $2,767,479, a decrease of 62.3%, compared with $7,334,255 for the same nine-month period in 2007. Diluted earnings per share were $1.15, a decrease of 60.5% compared with $2.91 for the same nine-month ended period in 2007. Net premiums written decreased 5.8% to $51,273,162, investment income decreased 8.2% to $3,471,800 and revenues decreased 10.2% to $58,810,282 compared with the prior year period.
"Revenues in the quarter were primarily impacted by ongoing weakness in real estate activity which led to nearly a 20% decline in our premiums written during the period," Mr. Fine stated. "Weak real estate markets also continue to unfavorably influence demand by real estate investors for our tax-deferred exchange segment. Realized losses on investments increased primarily due to a $478,000 write down related to impairments of investment securities."
"Expense management remains a priority for us as we balance efforts to invest in the growth of the Company while controlling expenses to reflect expectations for future levels of real estate activity," Mr. Fine added.
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, 2007, as filed with the Securities and Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
September 30, 2008 and 2007
(Unaudited)
For The Three For The Nine
Months Ended Months Ended
September 30 September 30
----------- ----------- ----------- -----------
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenues:
Underwriting
income:
Premiums
Written $15,410,424 $19,035,187 $51,493,078 $54,625,924
Less-premiums
for
reinsurance
ceded 78,604 40,734 219,916 212,750
----------- ----------- ----------- -----------
Net premiums
written 15,331,820 18,994,453 51,273,162 54,413,174
Investment
income-interest
and dividends 1,079,760 1,301,878 3,471,800 3,783,240
Net realized
gain (loss)
on investments (545,883) 521,008 (669,586) 887,211
Exchange
services
revenue 542,528 1,042,311 1,013,940 3,157,873
Other 1,188,338 1,199,333 3,720,966 3,258,787
----------- ----------- ----------- -----------
Total
Revenues 17,596,563 23,058,983 58,810,282 65,500,285
----------- ----------- ----------- -----------
Operating
Expenses:
Commissions
to agents 6,707,688 7,460,574 21,976,896 22,038,866
Provision for
claims 1,982,822 2,363,841 8,329,832 8,525,279
Salaries,
employee
benefits and
payroll taxes 5,253,705 5,136,337 16,063,267 15,501,851
Office
occupancy and
operations 1,141,259 1,284,093 3,833,594 4,173,117
Business
development 569,404 478,397 1,622,736 1,558,313
Filing fees and
taxes, other
than payroll
and income 92,608 177,917 424,112 469,585
Premium and
retaliatory
taxes 210,233 341,750 1,029,298 1,178,932
Professional
and contract
labor fees 371,122 606,308 1,395,062 2,077,458
Other 262,689 266,874 806,006 767,629
----------- ----------- ----------- -----------
Total
Operating
Expenses 16,591,530 18,116,091 55,480,803 56,291,030
----------- ----------- ----------- -----------
Income Before
Income Taxes 1,005,033 4,942,892 3,329,479 9,209,255
----------- ----------- ----------- -----------
Provision For
Income Taxes 88,000 1,085,000 562,000 1,875,000
----------- ----------- ----------- -----------
Net Income $ 917,033 $ 3,857,892 $ 2,767,479 $ 7,334,255
=========== =========== =========== ===========
Basic Earnings
Per Common Share $ 0.39 $ 1.56 $ 1.16 $ 2.95
=========== =========== =========== ===========
Weighted Average
Shares
Outstanding -
Basic 2,342,643 2,480,951 2,388,115 2,488,287
=========== =========== =========== ===========
Diluted Earnings
Per Common Share $ 0.39 $ 1.54 $ 1.15 $ 2.91
=========== =========== =========== ===========
Weighted Average
Shares
Outstanding -
Diluted 2,360,533 2,506,949 2,409,747 2,520,383
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2008 and December 31, 2007
(Unaudited)
Sept. 30, 2008 Dec. 31, 2007
------------ ------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at
amortized cost $ 556,721 $ 1,052,535
Available-for-sale, at fair value 77,021,610 90,530,946
Equity securities,
available-for-sale,
at fair value 12,066,559 14,586,066
Short-term investments 26,268,940 21,222,533
Other investments 2,207,869 1,634,301
------------ ------------
Total investments 118,121,699 129,026,381
Cash and cash equivalents 6,302,937 3,000,762
Premiums and fees receivable, net 5,641,878 6,900,968
Accrued interest and dividends 966,346 1,254,641
Prepaid expenses and other assets 2,374,820 1,276,806
Property acquired in settlement
of claims 395,734 278,476
Property, net 4,621,207 5,278,891
Deferred income taxes, net 3,136,788 2,625,495
------------ ------------
Total Assets $141,561,409 $149,642,420
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 37,290,000 $ 36,975,000
Accounts payable and
accrued liabilities 10,746,536 11,236,781
Commissions and reinsurance payable 302,429 406,922
Current income taxes payable -- 1,747,877
------------ ------------
Total liabilities 48,338,965 50,366,580
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,298,546 and
2,411,318 shares issued and
outstanding 2008 and 2007,
respectively, excluding 291,676 shares
for 2008 and 2007 of common stock
held by the Company's subsidiary) 1 1
Retained earnings 92,534,330 95,739,827
Accumulated other comprehensive income 688,113 3,536,012
------------ ------------
Total stockholders' equity 93,222,444 99,275,840
------------ ------------
Total Liabilities and
Stockholders' Equity $141,561,409 $149,642,420
Investors Title Company and Subsidiaries
Net Premiums Written By State
September 30, 2008 and 2007
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
September 30 September 30
State 2008 2007 2008 2007
---------------------------- ----------- ----------- -----------
Illinois $ 429,954 $ 431,878 $ 1,584,507 $ 1,281,366
Kentucky 761,945 654,399 2,393,886 1,879,543
Michigan 781,939 771,564 2,732,501 2,349,750
New York 472,152 641,631 1,670,039 1,807,065
North Carolina 7,305,962 9,733,783 25,022,108 26,865,540
Pennsylvania 423,695 409,063 1,388,971 1,141,953
South Carolina 1,962,189 2,177,495 5,878,324 5,751,099
Tennessee 564,210 652,157 1,719,884 2,034,008
Virginia 1,492,819 1,713,647 4,701,446 4,846,803
West Virginia 504,672 531,815 1,617,107 1,545,567
Other 709,837 1,317,755 2,686,711 5,111,563
----------- ----------- ----------- -----------
Direct
Premiums $15,409,374 $19,035,187 $51,395,484 $54,614,257
Reinsurance
Assumed 1,050 -- 97,594 11,667
Reinsurance
Ceded (78,604) (40,734) (219,916) (212,750)
----------- ----------- ----------- -----------
Net Premiums
Written $15,331,820 $18,994,453 $51,273,162 $54,413,174
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
September 30, 2008 and 2007
(Unaudited)
For The Three Months Ended For The Nine Months Ended
September 30 September 30
------------------------------- -------------------------------
2008 % 2007 % 2008 % 2007 %
----------- --- ----------- --- ----------- --- ----------- ---
Branch $ 5,680,591 37 $ 8,310,859 44 $19,920,404 39 $23,351,770 43
Agency 9,651,229 63 10,683,594 56 31,352,758 61 31,061,404 57
----------- --- ----------- --- ----------- --- ----------- ---
Total $15,331,820 100 $18,994,453 100 $51,273,162 100 $54,413,174 100
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