Investors Title (ITIC) 8-K Investors Title Company Announces Fourth Quarter and Fiscal Year 2009 Results

Exhibit 99.1

Investors Title Company Announces Fourth Quarter and Fiscal Year 2009 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--February 17, 2010--Investors Title Company today announced its results for the quarter and year ended December 31, 2009. For the fourth quarter, the Company reported net income of $309,300 compared with a net loss of $3,950,277 for the same three-month period ended in 2008. Net income per diluted share equaled $0.14 compared with a net loss per diluted share of $1.72 in the prior year period. Net premiums written increased 1.3% to $12,550,428; other revenue increased 23.5% to $1,157,938; investment income decreased 15.3% to $921,045; and total revenue increased 18.9% to $14,642,575.

Premiums written were in line with the prior year’s quarter as the ongoing low level of interest rates supported purchase transactions and mortgage refinance activity. Total revenue compared favorably primarily due to the investment losses realized in the prior year period.

Operating expenses continued to decline on a sequential quarter basis and compared favorably to the prior year period primarily due to the spike in fraud and mechanic lien claims experienced at the end of 2008. Salary and related expenses trended in line with the preceding quarter; however they compared unfavorably to the prior year period due to a reduction in 2008 incentive compensation.

For the year ended December 31, 2009, the Company reported net income of $4,828,779, compared with a net loss of $1,182,799 for 2008. Diluted income per share was $2.10, compared with a diluted loss per share of $0.50 for 2008. Net premiums written decreased 2.4% to $62,155,251; other revenue increased 6.4% to $4,957,054; investment income decreased 17% to $3,783,116; net realized loss on investments declined 83% to $498,089; and total revenue increased 0.3% to $71,308,160, all compared with the prior year.

Chairman J. Allen Fine added, “In the past year, conditions in the mortgage lending and real estate market continued to negatively affect net premiums written, although this trend was partially offset by the surge in mortgage refinancing which occurred primarily in the first six months. Our claims experience greatly improved from the prior year although the overall level remains elevated from historic averages due to increased mortgage foreclosure activity, which tends to uncover title defects. Commercial real estate and investment property activity remains subdued which has materially impacted the demand for our tax deferred exchange services.

We expect that mortgage lending and real estate market conditions will continue to exert downward pressure on future premiums written levels. Governmental stimulus efforts aimed at boosting home sales and supporting low mortgage interest rates have had a positive effect; however these programs are slated to end within the next few months. Absent further declines in interest rates, which are already at low levels, we anticipate that the elevated pace of mortgage refinance activity will likely recede and return to a more historical percentage of overall loan origination. Consequently, we expect that the health of real estate markets and volume of loan origination will increasingly depend on a growing economy and job creation.

We are closely monitoring the continually evolving operating environment in order to best position the Company during this downturn while being mindful of opportunities to enhance our competitive strengths and market position.”

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. Such risks and uncertainties include, without limitation: cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions; mechanic lien claims; declines in the performance of the Company’s investments; government regulation; and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three and Twelve Months Ended December 31, 2009 and 2008
(Unaudited)
		Three Months Ended December 31						Twelve Months Ended December 31
		2009			2008			2009			2008
Revenues:
Underwriting income:
Premiums Written	$	12,587,939		$	12,444,198		$	62,250,774		$	63,937,276
Less-premiums for reinsurance ceded		37,511			55,173			95,523			275,089
Net premiums written		12,550,428			12,389,025			62,155,251			63,662,187
Investment income-interest and dividends		921,045			1,086,935			3,783,116			4,558,735
Net realized loss on investments		(97,329	)		(2,252,790	)		(498,089	)		(2,922,376	)
Exchange services revenue		110,493			152,201			910,828			1,166,141
Other		1,157,938			937,608			4,957,054			4,658,574
Total Revenues		14,642,575			12,312,979			71,308,160			71,123,261
Operating Expenses:
Commissions to agents		6,052,270			5,740,911			29,254,311			27,717,807
Provision for claims		1,731,724			6,876,805			8,465,123			15,206,637
Salaries, employee benefits and payroll taxes		4,326,490			3,542,233			18,189,483			19,605,500
Office occupancy and operations		1,041,088			1,267,435			4,333,579			5,107,843
Business development		469,748			482,199			1,398,057			2,104,935
Filing fees and taxes, other than payroll and income		24,603			163,123			571,677			587,235
Premium and retaliatory taxes		255,177			251,999			1,268,301			1,281,297
Professional and contract labor fees		379,758			299,724			1,362,706			1,731,550
Other		185,417			234,827			549,144			997,256
Total Operating Expenses		14,466,275			18,859,256			65,392,381			74,340,060
Income (Loss) Before Income Taxes		176,300			(6,546,277	)		5,915,779			(3,216,799	)
(Benefit) Provision For Income Taxes		(133,000	)		(2,596,000	)		1,087,000			(2,034,000	)
Net Income (Loss)	$	309,300		$	(3,950,277	)	$	4,828,779		$	(1,182,799	)
Basic Earnings (Loss) Per Common Share	$	0.14		$	(1.72	)	$	2.11		$	(0.50	)
Weighted Average Shares Outstanding - Basic		2,285,991			2,293,086			2,291,816			2,364,361
Diluted Earnings (Loss) Per Common Share	$	0.14		$	(1.72	)	$	2.10		$	(0.50	)
Weighted Average Shares Outstanding - Diluted		2,288,814			2,293,086			2,299,429			2,364,361

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2009 and 2008
(Unaudited)
		December 31, 2009			December 31, 2008
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost	$	2,000		$	451,681
Available-for-sale, at fair value		88,801,186			87,708,500
Equity securities, available-for-sale, at fair value		11,854,301			9,965,297
Short-term investments		20,717,434			15,725,513
Other investments		2,307,220			2,040,962
Total investments		123,682,141			115,891,953
Cash and cash equivalents		8,733,221			5,155,046
Premiums and fees receivable, net		5,170,476			4,933,797
Accrued interest and dividends		1,122,806			1,225,070
Prepaid expenses and other assets		1,815,653			3,992,975
Property acquired in settlement of claims		175,476			395,734
Property, net		3,894,724			4,422,318
Deferred income taxes, net		1,833,207			3,841,295
Total Assets	$	146,427,704	$		139,858,188
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	39,490,000	$		39,238,000
Accounts payable and accrued liabilities		9,008,337			10,762,300
Current income taxes payable		670,290			-
Total liabilities		49,168,627			50,000,300
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000; 2,285,289 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		92,528,818			88,248,452
Accumulated other comprehensive income		4,730,258			1,609,435
Total stockholders' equity		97,259,077			89,857,888
Total Liabilities and Stockholders' Equity	$	146,427,704	$		139,858,188

Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three and Twelve Months Ended December 31, 2009 and 2008
(Unaudited)
	Three Months Ended						Twelve Months Ended
	December 31						December 31
State		2009			2008		2009				2008
Illinois	$	543,516		$	555,933		$	2,878,781		$	2,140,440
Kentucky		660,879			563,858			3,194,530			2,957,744
Michigan		628,320			594,403			4,382,209			3,326,904
New York		466,290			435,994			2,825,762			2,106,033
North Carolina		5,276,957			5,505,815			27,134,685			30,527,923
Pennsylvania		589,231			373,473			2,664,037			1,762,444
South Carolina		1,533,763			1,677,829			5,755,790			7,556,153
Tennessee		487,405			343,527			2,416,019			2,063,411
Virginia		1,087,983			1,087,891			5,015,185			5,789,337
West Virginia		509,296			460,496			2,239,908			2,077,603
Other		800,799			775,680			3,732,218			3,462,391
Direct Premiums	$	12,584,439		$	12,374,899		$	62,239,124		$	63,770,383
Reinsurance Assumed		3,500			69,299			11,650			166,893
Reinsurance Ceded		(37,511	)		(55,173	)		(95,523	)		(275,089	)
Net Premiums Written	$	12,550,428		$	12,389,025		$	62,155,251		$	63,662,187

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Twelve Months Ended December 31, 2009 and 2008
(Unaudited)
	Three Months Ended						Twelve Months Ended
	December 31						December 31
		2009	%		2008	%		2009	%		2008	%
Branch	$	4,093,859	33	$	4,360,036	35	$	21,474,082	35	$	24,312,013	38
Agency		8,456,569	67		8,028,989	65		40,681,169	65		39,350,174	62
Total	$	12,550,428	100	$	12,389,025	100	$	62,155,251	100	$	63,662,187	100

CONTACT:
Investors Title Company
Elizabeth B. Lewter, 919-968-2200