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

Exhibit 99.1

Investors Title Company Announces Third Quarter 2012 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--November 6, 2012--Investors Title Company (NASDAQ:ITIC) announced its results for the third quarter ended September 30, 2012. Net income increased 29.4% to $3,158,185, or $1.50 per diluted share, compared with $2,440,465, or $1.14 per diluted share, for the prior year quarter.

Revenues increased 23.6% versus the prior year quarter to $32,277,408, primarily due to a 21.0% increase in net premiums written. The premium growth reflects widespread volume increases across multiple markets, as overall mortgage activity increased substantially. New industry-wide premium charges and rate increases for certain markets also contributed to the increase in premiums. Premiums in the third quarter from both refinance and purchase transactions increased compared with the prior year quarter, while the proportion of refinance transactions remained relatively constant.

Operating expenses increased 21.6% to $27,559,493 versus the prior year quarter, primarily due to increases in the provision for claims, commissions to agents, and payroll expense. The loss provision rate as a percentage of net premiums written was higher compared with the prior year quarter primarily due to less favorable loss development experience, and an increase in the relative share of North Carolina premiums as a percentage of the total versus the prior year period. Average loss provision rates are normally higher in North Carolina than our other markets due to relatively low premium rates. Commissions to agents increased 11.1% commensurate with the increase in agency premiums. The increase in payroll expense is primarily due to staff additions in our Information Systems department.

For the nine months ended September 30, 2012, net income increased 57.1% to $7,939,812, or $3.74 per diluted share, compared with $5,054,477, or $2.32 per diluted share, for the prior year period. Revenues increased 15.6% to $80,772,007 as a result of factors noted above, while operating expenses increased 10.3% versus the prior year period.

Chairman J. Allen Fine added, “We are pleased to report a strong quarter, as we benefitted from continued strength in refinance and purchase activity and further expansion of our agent base. Claims experience remains generally positive, and we continue to closely monitor operating expenses even as we make targeted investments in improvements to our client-facing technology. We continue to focus on enhancing our competitive strengths and capitalizing on opportunities to profitably expand our 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 and Nine Months Ended September 30, 2012 and 2011
(Unaudited)
		Three Months Ended			Nine Months Ended
		September 30			September 30
		2012		2011		2012		2011
Revenues:
Net premiums written	$	29,018,123	$	23,986,592	$	71,927,113	$	63,303,202
Investment income - interest and dividends		962,573		887,055		2,949,752		2,665,245
Net realized gain (loss) on investments		99,790		(200,087)		357,819		(79,172)
Other		2,196,922		1,443,310		5,537,323		3,968,828
Total Revenues		32,277,408		26,116,870		80,772,007		69,858,103
Operating Expenses:
Commissions to agents		16,840,421		15,161,823		40,683,365		39,335,237
Provision for claims		2,432,057		349,672		4,424,523		2,301,259
Salaries, employee benefits and payroll taxes		5,597,634		4,778,542		16,077,373		14,110,213
Office occupancy and operations		954,876		919,681		2,919,749		2,836,068
Business development		488,401		363,731		1,286,566		1,123,517
Filing fees, franchise and local taxes		140,740		79,638		673,992		411,897
Premium and retaliatory taxes		423,626		459,711		1,312,906		1,368,168
Professional and contract labor fees		548,052		412,227		1,655,279		1,132,308
Other		133,686		130,380		455,499		392,959
Total Operating Expenses		27,559,493		22,655,405		69,489,252		63,011,626
Income Before Income Taxes		4,717,915		3,461,465		11,282,755		6,846,477
Provision For Income Taxes		1,479,000		1,021,000		3,239,000		1,792,000
Net Income		3,238,915		2,440,465		8,043,755		5,054,477
Less: Net Income Attributable to Redeemable Noncontrolling Interests		80,730		-		103,943		-
Net Income Attributable to the Company	$	3,158,185	$	2,440,465	$	7,939,812	$	5,054,477
Basic Earnings Per Common Share	$	1.52	$	1.15	$	3.80	$	2.34
Weighted Average Shares Outstanding - Basic		2,071,605		2,124,078		2,090,369		2,164,240
Diluted Earnings Per Common Share	$	1.50	$	1.14	$	3.74	$	2.32
Weighted Average Shares Outstanding - Diluted		2,108,526		2,143,327		2,124,122		2,180,455

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2012 and December 31, 2011
(Unaudited)
		September 30, 2012		December 31, 2011
Assets:
Investments in securities:
Fixed maturities, available-for-sale, at fair value	$	85,167,066	$	85,407,365
Equity securities, available-for-sale, at fair value		28,081,485		22,549,975
Short-term investments		11,231,113		14,112,262
Other investments		5,925,020		3,631,714
Total investments		130,404,684		125,701,316
Cash and cash equivalents		19,982,759		18,042,258
Premiums and fees receivable, net		10,208,947		6,810,000
Accrued interest and dividends		919,443		1,108,156
Prepaid expenses and other assets		4,938,693		2,743,517
Property, net		3,555,510		3,553,216
Total Assets	$	170,010,036	$	157,958,463
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims	$	39,006,000	$	37,996,000
Accounts payable and accrued liabilities		13,869,604		12,330,383
Current income taxes payable		283,595		640,533
Deferred income taxes, net		2,701,940		479,363
Total liabilities		55,861,139		51,446,279
Redeemable Noncontrolling Interest		550,193		-
Stockholders' Equity:
Common stock - no par value (shares authorized 10,000,000; 2,062,604 and 2,107,681 shares issued and outstanding as of September 30, 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		103,908,636		99,003,018
Accumulated other comprehensive income		9,690,067		7,509,165
Total stockholders' equity		113,598,704		106,512,184
Total Liabilities and Stockholders' Equity	$	170,010,036	$	157,958,463

Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Nine Months Ended September 30, 2012 and 2011
(Unaudited)
	Three Months Ended						Nine Months Ended
	September 30						September 30
	2012		%	2011		%	2012		%	2011		%
Branch	$	6,559,658	22.6	$	4,387,971	18.3	$	17,546,488	24.4	$	12,061,485	19.1
Agency		22,458,465	77.4		19,598,621	81.7		54,380,625	75.6		51,241,717	80.9
Total	$	29,018,123	100.0	$	23,986,592	100.0	$	71,927,113	100.0	$	63,303,202	100.0

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