Investors Title (ITIC) 8-K Investors Title Company Announces Second Quarter 2010 Results

Exhibit 99.1

Investors Title Company Announces Second Quarter 2010 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--August 2, 2010--Investors Title Company today announced its results for the second quarter ended June 30, 2010. Net income increased 20.0% for the second quarter to $2,537,560, or $1.11 per diluted share, compared with $2,115,473, or $0.92 per diluted share, for the prior year period.

Revenues decreased 25.0% to $16,218,766 versus the prior year period, primarily due to a 27.9% decrease in net premiums written. Although premiums resulting from purchase transactions increased, the continued sharp decline in refinance premiums versus the prior year period resulted in an overall unfavorable comparison. Investment income decreased 4.6% to $915,852 as a result of unfavorable trends in the interest rate environment.

Operating expenses decreased 29.5% to $13,216,206 versus the prior year period, primarily due to decreases in commissions to agents and the provision for claims. Commissions to agents decreased 26.7%, commensurate with the decrease in premium volume. The provision for claims decreased 95.9% due to a combination of lower premium volume versus the prior year period, a recovery of approximately $942,000 from the Company’s fidelity bond against a prior year claim, and favorable claims experience in prior policy years. In addition, salaries and related expenses decreased 4.0%, and office occupancy and operations expenses decreased 19.0%, due to continued emphasis on overhead expense management.

For the six-month period ended June 30, 2010, the Company reported net income of $2,554,975, a decrease of 28.0%, compared with $3,550,436 for the prior year period. Diluted income per share was $1.11, a decrease of 27.9%, compared with $1.54 for the prior year period. Net premiums written decreased 28.0% to $25,425,252, investment income decreased 6.5% to $1,822,474, and total revenues decreased 25.8% to $29,916,177. Operating expenses decreased 24.6% to $26,898,202 versus the prior year period, largely as a result of factors noted above for the quarter.

Chairman J. Allen Fine added, “We are pleased to report an improvement in operating results during the quarter even as overall mortgage originations continued to decline. Although the extension of the deadline for the homebuyer Federal tax credit contributed to an increase in purchase originations, the spike in activity did not completely offset an overall lower volume of mortgage refinancing. We were pleased to see a slight reduction in our claims loss rate, which contributed to a favorable comparison in the provision for claims, along with the recovery from a fidelity bond. Our balance sheet and financial condition remain strong, and operationally we continue to emphasize efficiency improvements and the expansion of our agency base.”

Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides investment management services to individuals, companies, banks and trusts, as well as services in connection with tax-deferred exchanges of like-kind property.

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; 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, 2009, 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 Six Months Ended June 30, 2010 and 2009
(Unaudited)
		Three Months Ended				Six Months Ended
		June 30				June 30
		2010		2009		2010		2009
Revenues:
Underwriting income:
Premiums Written	$	13,665,348	$	18,945,561	$	25,495,169	$	35,356,158
Less-premiums for reinsurance ceded		26,398		33,173		69,917		33,950
Net premiums written		13,638,950		18,912,388		25,425,252		35,322,208
Investment income-interest and dividends		915,852		960,454		1,822,474		1,950,089
Net realized gain (loss) on investments		325,780		9,995		350,930		(289,942	)
Other		1,338,184		1,737,722		2,317,521		3,320,613
Total Revenues		16,218,766		21,620,559		29,916,177		40,302,968
Operating Expenses:
Commissions to agents		6,476,376		8,831,742		12,075,827		16,363,951
Provision for claims		112,415		2,751,814		1,424,819		4,798,940
Salaries, employee benefits and payroll taxes		4,345,961		4,529,066		8,830,273		9,667,242
Office occupancy and operations		978,822		1,208,140		2,067,227		2,306,722
Business development		352,365		329,011		626,661		591,828
Filing fees and taxes, other than payroll and income		147,277		185,204		292,699		342,255
Premium and retaliatory taxes		281,784		375,510		582,730		742,772
Professional and contract labor fees		338,794		337,290		703,872		651,989
Other		182,412		204,309		294,094		189,833
Total Operating Expenses		13,216,206		18,752,086		26,898,202		35,655,532
Income Before Income Taxes		3,002,560		2,868,473		3,017,975		4,647,436
Provision For Income Taxes		465,000		753,000		463,000		1,097,000
Net Income	$	2,537,560	$	2,115,473	$	2,554,975	$	3,550,436
Basic Earnings Per Common Share	$	1.11	$	0.92	$	1.12	$	1.55
Weighted Average Shares Outstanding - Basic		2,285,653		2,296,644		2,285,392		2,295,298
Diluted Earnings Per Common Share	$	1.11	$	0.92	$	1.11	$	1.54
Weighted Average Shares Outstanding - Diluted		2,293,199		2,296,644		2,293,232		2,300,017

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2010 and December 31, 2009
(Unaudited)
		June 30, 2010		December 31, 2009
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost	$	-	$	2,000
Available-for-sale, at fair value		89,134,390		88,801,186
Equity securities, available-for-sale, at fair value		11,553,523		11,854,301
Short-term investments		23,422,684		20,717,434
Other investments		2,239,326		2,307,220
Total investments		126,349,923		123,682,141
Cash and cash equivalents		5,247,678		8,733,221
Premiums and fees receivable, net		5,417,917		5,170,476
Accrued interest and dividends		1,163,874		1,122,806
Prepaid expenses and other assets		2,051,941		1,815,653
Property acquired in settlement of claims		158,129		175,476
Property, net		3,697,815		3,894,724
Current income taxes receivable		949,449		-
Deferred income taxes, net		561,860		1,833,207
Total Assets	$	145,598,586	$	146,427,704
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	37,752,000	$	39,490,000
Accounts payable and accrued liabilities		8,494,940		9,008,337
Current income taxes payable		-		670,290
Total liabilities		46,246,940		49,168,627
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,284,909 and 2,285,289 shares issued and outstanding as of
June 30, 2010 and December 31, 2009, respectively, excluding
291,676 shares for 2010 and 2009 of common stock held by the
Company's subsidiary)		1		1
Retained earnings		94,777,437		92,528,818
Accumulated other comprehensive income		4,574,208		4,730,258
Total stockholders' equity		99,351,646		97,259,077
Total Liabilities and Stockholders' Equity	$	145,598,586	$	146,427,704

Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three and Six Months Ended June 30, 2010 and 2009
(Unaudited)
	Three Months Ended						Six Months Ended
	June 30						June 30
State		2010			2009			2010			2009
Illinois	$	568,043		$	765,631		$	1,003,534		$	1,857,221
Kentucky		869,249			949,874			1,500,047			1,820,177
Michigan		1,026,010			1,778,422			1,982,856			2,630,695
New York		472,739			880,406			874,299			1,835,843
North Carolina		5,762,751			8,293,158			10,684,455			15,857,365
Pennsylvania		667,906			876,633			1,119,533			1,485,818
South Carolina		1,377,219			1,345,921			2,746,405			2,531,851
Tennessee		530,672			752,791			1,028,510			1,318,559
Virginia		1,090,823			1,472,687			2,056,391			2,700,451
West Virginia		553,479			610,139			965,691			1,157,720
Other		746,457			1,219,899			1,523,514			2,159,658
Direct Premiums	$	13,665,348		$	18,945,561		$	25,485,235		$	35,355,358
Reinsurance Assumed		-			-			9,934			800
Reinsurance Ceded		(26,398	)		(33,173	)		(69,917	)		(33,950	)
Net Premiums Written	$	13,638,950		$	18,912,388		$	25,425,252		$	35,322,208

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Six Months Ended June 30, 2010 and 2009
(Unaudited)
	Three Months Ended						Six Months Ended
	June 30						June 30
		2010	%		2009	%		2010	%		2009	%
Branch	$	4,420,264	32.4	$	6,656,374	35.2	$	8,170,064	32.1	$	12,699,378	36.0
Agency		9,218,686	67.6		12,256,014	64.8		17,255,188	67.9		22,622,830	64.0
Total	$	13,638,950	100.0	$	18,912,388	100.0	$	25,425,252	100	$	35,322,208	100.0

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