CHAPEL HILL, N.C., July 31, 2009 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the second quarter ended June 30, 2009, the Company reported net income of $2,115,473 compared with a net loss of $273,934 for the same three-month period in 2008. Net income per diluted share equaled $0.92 compared with a net loss per diluted share of $0.11 in the same period last year. Net premiums written increased 4.3% to $18,912,388, investment income decreased 13.7% to $960,454 and total revenues increased 6.2% to $21,620,559 compared with the prior year period.
For the six-month period ended June 30, 2009, the Company reported net income of $3,550,436, an increase of 91.9%, compared with $1,850,446 for the same six-month period in 2008. Diluted earnings per share was $1.54, an increase of 102.6% compared with $0.76 for the same six-month ended period in 2008. Net premiums written decreased 1.7% to $35,322,208, investment income decreased 18.5% to $1,950,089 and total revenues decreased 2.2% to $40,302,968 compared with the prior year period.
Operating results for the quarter ended June 30, 2009 showed improvement over the same period in 2008 due to increased premium revenue, a smaller provision for claims and decreases in other operating expenses which were primarily payroll related. Premiums written benefited from a lower mortgage interest rate environment during the first half of the year which spurred an increase in mortgage refinancing. The claims provision remained elevated relative to historic ranges due in part to the ongoing upward trend of mortgage foreclosures, but compared favorably to the prior year period due to a $2.4 million charge for a large fraud-related claim in that quarter.
"Although residential and commercial sales activity remained sluggish, the high level of mortgage refinance activity enabled us to increase premiums written over the prior year period," Chairman Fine added. "Premiums written through our agency network continued to grow as a percentage of our revenue and we are pleased with our progress in this area. Various cost cutting measures undertaken have resulted in a lower level of operating expenses and we continue to search for opportunity to reduce cost and improve our operating efficiency."
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.
The Investors Title Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3951
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, 2008, as filed with the Securities and Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income (Loss)
June 30, 2009 and 2008
(Unaudited)
For The Three For The Six
Months Ended Months Ended
June 30 June 30
------------------------ ------------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Underwriting
income:
Premiums Written $18,945,561 $18,178,892 $35,356,158 $36,082,654
Less-premiums for
reinsurance
ceded 33,173 50,910 33,950 141,312
----------- ----------- ----------- -----------
Net premiums
written 18,912,388 18,127,982 35,322,208 35,941,342
Investment income-
interest and
dividends 960,454 1,112,681 1,950,089 2,392,040
Net realized gain
(loss) on
investments 9,995 (242,272) (289,942) (123,703)
Exchange services
revenue 300,963 66,714 624,727 471,412
Other 1,436,759 1,287,695 2,695,886 2,532,628
----------- ----------- ----------- -----------
Total Revenues 21,620,559 20,352,800 40,302,968 41,213,719
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 8,831,742 7,949,938 16,363,951 15,269,208
Provision for
claims 2,751,814 4,298,414 4,798,940 6,347,010
Salaries, employee
benefits and
payroll taxes 4,529,066 5,311,626 9,667,242 10,809,562
Office occupancy
and operations 1,208,140 1,330,815 2,306,722 2,697,188
Business
development 329,011 567,881 591,828 1,053,332
Filing fees and
taxes, other than
payroll and
income 185,204 138,875 342,255 331,504
Premium and
retaliatory taxes 375,510 451,728 742,772 819,065
Professional and
contract labor
fees 326,673 502,531 628,686 1,023,940
Other 214,926 301,926 213,136 538,464
----------- ----------- ----------- -----------
Total Operating
Expenses 18,752,086 20,853,734 35,655,532 38,889,273
----------- ----------- ----------- -----------
Income (Loss)
Before Income
Taxes 2,868,473 (500,934) 4,647,436 2,324,446
----------- ----------- ----------- -----------
Provision (Benefit)
For Income Taxes 753,000 (227,000) 1,097,000 474,000
----------- ----------- ----------- -----------
Net Income (Loss) $ 2,115,473 $ (273,934) $ 3,550,436 $ 1,850,446
=========== =========== =========== ===========
Basic Earnings
(Loss) Per Common
Share $ 0.92 $ (0.11) $ 1.55 $ 0.77
=========== =========== =========== ===========
Weighted Average
Shares Outstanding
- Basic 2,296,644 2,409,206 2,295,298 2,410,852
=========== =========== =========== ===========
Diluted Earnings
(Loss) Per Common
Share $ 0.92 $ (0.11) $ 1.54 $ 0.76
=========== =========== =========== ===========
Weighted Average
Shares Outstanding
- Diluted 2,296,644 2,409,206 2,300,017 2,434,204
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2009 and December 31, 2008
(Unaudited)
June 30, December 31,
2009 2008
------------ ------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost $ 446,907 $ 451,681
Available-for-sale, at fair value 85,803,489 87,708,500
Equity securities, available-for-sale,
at fair value 10,392,874 9,965,297
Short-term investments 15,127,184 15,725,513
Other investments 2,400,932 2,040,962
------------ ------------
Total investments 114,171,386 115,891,953
Cash and cash equivalents 8,120,607 5,155,046
Premiums and fees receivable, net 7,956,609 4,933,797
Accrued interest and dividends 1,151,634 1,225,070
Prepaid expenses and other assets 3,595,117 3,992,975
Property acquired in settlement of claims 378,884 395,734
Property, net 4,051,221 4,422,318
Deferred income taxes, net 2,261,779 3,841,295
------------ ------------
Total Assets $141,687,237 $139,858,188
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 39,583,000 $ 39,238,000
Accounts payable and accrued liabilities 7,800,818 10,762,300
------------ ------------
Total liabilities 47,383,818 50,000,300
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,297,207 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 91,859,793 88,248,452
Accumulated other comprehensive income 2,443,625 1,609,435
------------ ------------
Total stockholders' equity 94,303,419 89,857,888
------------ ------------
Total Liabilities and Stockholders'
Equity $141,687,237 $139,858,188
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
June 30, 2009 and 2008
(Unaudited)
For the Three Months Ended For the Six Months Ended
June 30 June 30
State 2009 2008 2009 2008
---------------------------------------------------------------------
Illinois $ 765,631 $ 564,584 $ 1,857,221 $ 1,154,553
Kentucky 949,874 815,131 1,820,177 1,631,941
Michigan 1,778,422 904,735 2,630,695 1,950,562
New York 880,406 685,689 1,835,843 1,197,887
North Carolina 8,293,158 8,767,479 15,857,365 17,716,146
Pennsylvania 876,633 522,147 1,485,818 965,276
South Carolina 1,345,921 2,012,755 2,531,851 3,916,135
Tennessee 752,791 614,000 1,318,559 1,155,674
Virginia 1,472,687 1,686,833 2,700,451 3,208,627
West Virginia 610,139 641,537 1,157,720 1,112,435
Other 1,219,899 963,802 2,159,658 1,976,874
----------- ------------ ----------- -----------
Direct Premiums $18,945,561 $ 18,178,692 $35,355,358 $35,986,110
Reinsurance Assumed -- 200 800 96,544
Reinsurance Ceded (33,173) (50,910) (33,950) (141,312)
----------- ------------ ----------- -----------
Net Premiums
Written $18,912,388 $ 18,127,982 $35,322,208 $35,941,342
=========== ============ =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2009 and 2008
(Unaudited)
For The Three Months Ended For The Six Months Ended
June 30 June 30
------------------------------- -------------------------------
2009 % 2008 % 2009 % 2008 %
------------------------------- -------------------------------
Branch $ 6,656,374 35 $ 6,901,291 38 $12,699,378 36 $14,266,121 40
Agency 12,256,014 65 11,226,691 62 22,622,830 64 21,675,221 60
------------------------------- -------------------------------
Total $18,912,388 100 $18,127,982 100 $35,322,208 100 $35,941,342 100
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