CHAPEL HILL, N.C., May 4, 2009 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the quarter ended March 31, 2009, the Company reported net income of $1,434,963, a decrease of 32.5% compared with $2,124,380 for the prior year period. Net income per diluted share equaled $0.62, a decrease of 28.7% compared with $0.87 per diluted share in the same period last year. Net premiums written decreased 7.9% to $16,409,820 and total revenues decreased 10.4% to $18,682,409 compared with the prior year period. Operating expenses decreased 6.3% to $16,903,446 compared with the prior year.
Revenues decreased over the prior year period primarily due to a decrease in net premiums written and investment income, and an increase in realized losses on impaired investments. Ongoing weakness in real estate sales led to the decline in net premiums written over prior year volume. This decline was partially offset by an uptick in refinance activity during the current quarter. The Company impaired approximately $345,000 of investments during the first quarter of 2009.
Chairman Fine added, "Premiums written received a significant boost from an increase in mortgage refinancing during the first quarter as interest rates remained at low levels. Nevertheless, the depressed real estate market continues to negatively affect purchase activity and overall title policy issuance. Claims expense remained stubbornly high as we continue to receive mechanic lien claims on property constructed during 2008. We are keeping a careful watch over evolving conditions in the current real estate climate."
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 risks, 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, 2008, as filed with the Securities and Exchange Commission.
The Investors Title Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3951
Investors Title Company and Subsidiaries
Consolidated Statements of Income
March 31, 2009 and 2008
(Unaudited)
For The Three
Months Ended
March 31
------------------------------
2009 2008
------------- -------------
Revenues:
Underwriting income:
Premiums Written $ 16,410,597 $ 17,903,762
Less-premiums for reinsurance
ceded 777 90,402
------------- -------------
Net premiums written 16,409,820 17,813,360
Investment income-interest and
dividends 989,635 1,279,359
Net realized (loss) gain on
investments (299,937) 118,569
Exchange services revenue 323,764 404,698
Other 1,259,127 1,244,933
------------- -------------
Total Revenues 18,682,409 20,860,919
------------- -------------
Operating Expenses:
Commissions to agents 7,532,209 7,319,270
Provision for claims 2,047,126 2,048,596
Salaries, employee benefits and
payroll taxes 5,138,176 5,497,936
Office occupancy and operations 1,098,582 1,366,373
Business development 262,817 485,451
Filing fees and taxes, other
than payroll and income 157,051 192,629
Premium and retaliatory taxes 367,262 367,337
Professional and contract
labor fees 302,013 521,409
Other (1,790) 236,538
------------- -------------
Total Operating Expenses 16,903,446 18,035,539
------------- -------------
Income Before Income Taxes 1,778,963 2,825,380
------------- -------------
Provision For Income Taxes 344,000 701,000
------------- -------------
Net Income $ 1,434,963 $ 2,124,380
============= =============
Basic Earnings Per Common Share $ 0.63 $ 0.88
============= =============
Weighted Average Shares Outstanding
- Basic 2,293,951 2,412,499
============= =============
Diluted Earnings Per Common Share $ 0.62 $ 0.87
============= =============
Weighted Average Shares Outstanding
- Diluted 2,296,041 2,437,195
============= =============
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2009 and December 31, 2008
(Unaudited)
March 31, December 31,
2009 2008
------------- -------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized
cost $ 446,793 $ 451,681
Available-for-sale, at fair
value 87,187,255 87,708,500
Equity securities,
available-for-sale, at fair
value 8,923,089 9,965,297
Short-term investments 15,701,808 15,725,513
Other investments 2,101,894 2,040,962
------------- -------------
Total investments 114,360,839 115,891,953
Cash and cash equivalents 4,822,641 5,155,046
Premiums and fees receivable, net 6,614,428 4,933,797
Accrued interest and dividends 1,046,637 1,225,070
Prepaid expenses and other assets 3,760,409 3,992,975
Property acquired in settlement
of claims 414,413 395,734
Property, net 4,200,366 4,422,318
Deferred income taxes, net 2,801,536 3,841,295
------------- -------------
Total Assets $ 138,021,269 $ 139,858,188
============= =============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 38,988,000 $ 39,238,000
Accounts payable and accrued
liabilities 7,514,108 10,762,300
------------- -------------
Total liabilities 46,502,108 50,000,300
------------- -------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,294,118
and 2,293,268 shares issued and
outstanding 2009 and 2008,
respectively, excluding 291,676
shares for 2009 and 2008 of common
stock held by the Company's
subsidiary) 1 1
Retained earnings 89,692,794 88,248,452
Accumulated other comprehensive
income 1,826,366 1,609,435
------------- -------------
Total stockholders' equity 91,519,161 89,857,888
------------- -------------
Total Liabilities and
Stockholders' Equity $ 138,021,269 $ 139,858,188
============= =============
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three Months Ended March 31, 2009 and 2008
(Unaudited)
2009 2008
-------------------------------------------------------
Illinois $ 1,091,590 $ 589,969
Kentucky 870,303 816,810
Michigan 852,273 1,045,827
New York 955,437 512,198
North Carolina 7,564,207 8,948,667
Pennsylvania 609,185 443,129
South Carolina 1,185,930 1,903,380
Tennessee 565,768 541,674
Virginia 1,227,764 1,521,794
West Virginia 547,581 470,898
Other States 939,759 1,013,072
------------- -------------
Direct Premiums 16,409,797 17,807,418
Reinsurance Assumed 800 96,344
Reinsurance Ceded (777) (90,402)
------------- -------------
Net Premiums Written $ 16,409,820 $ 17,813,360
============= =============
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
March 31, 2009 and 2008
(Unaudited)
For The Three Months Ended
March 31
-------------------------------------
2009 % 2008 %
-------------------------------------
Branch $ 6,043,004 37 $ 7,364,830 41
Agency 10,366,816 63 10,448,530 59
-------------------------------------
Total $16,409,820 100 $17,813,360 100
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