Investors Title (ITIC) 8-K Investors Title Company Announces First Quarter 2012 Financial Results

Exhibit 99.1

Investors Title Company Announces First Quarter 2012 Financial Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--May 4, 2012--Investors Title Company (NASDAQ: ITIC) today announced its results for the quarter ended March 31, 2012. The Company reported net income of $1,432,139, or $0.67 per diluted share, compared with $1,019,207, or $0.46 per diluted share, for the prior year period.

Total revenues increased 11.9% versus the prior year period to $22,414,274, primarily due to a 10.1% increase in net premiums written. Historically low interest rates drove a substantial increase in refinance activity versus the prior year period. Purchase activity was up as well, although to a lesser extent. New industry-wide premium charges for North Carolina that went into effect during the quarter also contributed to growth in premium revenue.

Total expenses increased 9.6% versus the prior year period, primarily due to increases in variable expenses such as commissions and the provision for claims, which fluctuate with premium volumes. The provision for claims as a percentage of net premiums written was 8.3% versus 4.0% in the prior year period due to an increase in volume in states with a higher average loss ratio, and an abnormally low claims expense in the prior year period. In addition, the Company continues to benefit from long-term reductions in operating expenses such as occupancy and operating costs in its branches due to an emphasis on expense control over the past few years.

Chairman J. Allen Fine added, “We are pleased with the uptick in mortgage lending activity and our first quarter results. Operating expenses were largely in line with recent quarterly trends adjusting for the improvement in activity levels, although we expect them to trend higher as we increase our investment in a number of software development initiatives. Our balance sheet remains very strong, and we continue to focus on long-term opportunities to enhance our competitive strengths and market presence.”

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, among other statements, any predictions regarding future agency expansion or increasing operational efficiency. 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: the 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, 2011, as filed with the Securities and Exchange Commission, and in subsequent filings.

Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
	Three Months Ended
	March 31
	2012		2011
Revenues:
Net premiums written	$	19,667,420	$	17,865,588
Investment income - interest and dividends		977,261		899,372
Net realized gain (loss) on investments		192,881		(26,160	)
Other		1,576,712		1,283,220
Total Revenues		22,414,274		20,022,020
Operating Expenses:
Commissions to agents		11,192,127		10,879,586
Provision for claims		1,631,359		721,626
Salaries, employee benefits and payroll taxes		4,990,632		4,691,996
Office occupancy and operations		927,038		963,927
Business development		393,447		387,547
Filing fees, franchise and local taxes		351,922		214,113
Premium and retaliatory taxes		414,794		405,473
Professional and contract labor fees		400,537		308,524
Other		167,279		103,021
Total Operating Expenses		20,469,135		18,675,813
Income Before Income Taxes		1,945,139		1,346,207
Provision For Income Taxes		513,000		327,000
Net Income	$	1,432,139	$	1,019,207
Basic Earnings Per Common Share	$	0.68	$	0.46
Weighted Average Shares Outstanding - Basic		2,100,835		2,234,480
Diluted Earnings Per Common Share	$	0.67	$	0.46
Weighted Average Shares Outstanding - Diluted		2,128,788		2,239,500

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2012 and December 31, 2011
(Unaudited)
	March 31, 2012		December 31, 2011
Assets
Investments in securities:
Fixed maturities, available-for-sale, at fair value	$	87,142,860	$	85,407,365
Equity securities, available-for-sale, at fair value		26,824,431		22,549,975
Short-term investments		8,571,468		14,112,262
Other investments		5,628,864		3,631,714
Total investments		128,167,623		125,701,316
Cash and cash equivalents		16,465,383		18,042,258
Premiums and fees receivable, net		7,143,066		6,810,000
Accrued interest and dividends		962,560		1,108,156
Prepaid expenses and other assets		2,713,752		2,743,517
Property, net		3,469,310		3,553,216
Total Assets	$	158,921,694	$	157,958,463
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	38,285,000	$	37,996,000
Accounts payable and accrued liabilities		10,513,737		12,330,383
Current income taxes payable		148,262		640,533
Deferred income taxes, net		1,445,108		479,363
Total liabilities		50,392,107		51,446,279
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000;
2,097,564 and 2,107,681 shares issued and outstanding as
of March 31, 2012 and December 31, 2011, respectively,
excluding 291,676 shares for 2012 and 2011 of common stock
held by the Company's subsidiary)		1		1
Retained earnings		99,841,101		99,003,018
Accumulated other comprehensive income		8,688,485		7,509,165
Total stockholders' equity		108,529,587		106,512,184
Total Liabilities and Stockholders' Equity	$	158,921,694	$	157,958,463

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three Months Ended March 31, 2012 and 2011
(Unaudited)
	Three Months Ended
	March 31
	2012		%	2011		%
Branch	$	4,822,792	24.5	$	3,696,280	20.7
Agency		14,844,628	75.5		14,169,308	79.3
Total	$	19,667,420	100.0	$	17,865,588	100.0

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