EXHIBIT 99.1
Investors Title Company Announces Third Quarter 2008 Results
CHAPEL HILL, N.C., Nov. 6, 2008 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the third quarter ended September 30, 2008, the Company reported net income of $917,033, a decrease of 76.2%, compared with net income of $3,857,892 for the same three-month period in 2007. Net income per diluted share equaled $0.39 compared with $1.54 in the same period last year. Net premiums written decreased 19.3% to $15,331,820, investment income decreased 17.1% to $1,079,760 and revenues decreased 23.7% to $17,596,563 compared with the prior year period.
For the nine-month period ended September 30, 2008, the Company reported net income of $2,767,479, a decrease of 62.3%, compared with $7,334,255 for the same nine-month period in 2007. Diluted earnings per share were $1.15, a decrease of 60.5% compared with $2.91 for the same nine-month ended period in 2007. Net premiums written decreased 5.8% to $51,273,162, investment income decreased 8.2% to $3,471,800 and revenues decreased 10.2% to $58,810,282 compared with the prior year period.
"Revenues in the quarter were primarily impacted by ongoing weakness in real estate activity which led to nearly a 20% decline in our premiums written during the period," Mr. Fine stated. "Weak real estate markets also continue to unfavorably influence demand by real estate investors for our tax-deferred exchange segment. Realized losses on investments increased primarily due to a $478,000 write down related to impairments of investment securities."
"Expense management remains a priority for us as we balance efforts to invest in the growth of the Company while controlling expenses to reflect expectations for future levels of real estate activity," Mr. Fine added.
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. 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, 2007, as filed with the Securities and Exchange Commission.
Investors Title Company and Subsidiaries Consolidated Statements of Income September 30, 2008 and 2007 (Unaudited) For The Three For The Nine Months Ended Months Ended September 30 September 30 ----------- ----------- ----------- ----------- 2008 2007 2008 2007 ----------- ----------- ----------- ----------- Revenues: Underwriting income: Premiums Written $15,410,424 $19,035,187 $51,493,078 $54,625,924 Less-premiums for reinsurance ceded 78,604 40,734 219,916 212,750 ----------- ----------- ----------- ----------- Net premiums written 15,331,820 18,994,453 51,273,162 54,413,174 Investment income-interest and dividends 1,079,760 1,301,878 3,471,800 3,783,240 Net realized gain (loss) on investments (545,883) 521,008 (669,586) 887,211 Exchange services revenue 542,528 1,042,311 1,013,940 3,157,873 Other 1,188,338 1,199,333 3,720,966 3,258,787 ----------- ----------- ----------- ----------- Total Revenues 17,596,563 23,058,983 58,810,282 65,500,285 ----------- ----------- ----------- ----------- Operating Expenses: Commissions to agents 6,707,688 7,460,574 21,976,896 22,038,866 Provision for claims 1,982,822 2,363,841 8,329,832 8,525,279 Salaries, employee benefits and payroll taxes 5,253,705 5,136,337 16,063,267 15,501,851 Office occupancy and operations 1,141,259 1,284,093 3,833,594 4,173,117 Business development 569,404 478,397 1,622,736 1,558,313 Filing fees and taxes, other than payroll and income 92,608 177,917 424,112 469,585 Premium and retaliatory taxes 210,233 341,750 1,029,298 1,178,932 Professional and contract labor fees 371,122 606,308 1,395,062 2,077,458 Other 262,689 266,874 806,006 767,629 ----------- ----------- ----------- ----------- Total Operating Expenses 16,591,530 18,116,091 55,480,803 56,291,030 ----------- ----------- ----------- ----------- Income Before Income Taxes 1,005,033 4,942,892 3,329,479 9,209,255 ----------- ----------- ----------- ----------- Provision For Income Taxes 88,000 1,085,000 562,000 1,875,000 ----------- ----------- ----------- ----------- Net Income $ 917,033 $ 3,857,892 $ 2,767,479 $ 7,334,255 =========== =========== =========== =========== Basic Earnings Per Common Share $ 0.39 $ 1.56 $ 1.16 $ 2.95 =========== =========== =========== =========== Weighted Average Shares Outstanding - Basic 2,342,643 2,480,951 2,388,115 2,488,287 =========== =========== =========== =========== Diluted Earnings Per Common Share $ 0.39 $ 1.54 $ 1.15 $ 2.91 =========== =========== =========== =========== Weighted Average Shares Outstanding - Diluted 2,360,533 2,506,949 2,409,747 2,520,383 =========== =========== =========== =========== Investors Title Company and Subsidiaries Consolidated Balance Sheets As of September 30, 2008 and December 31, 2007 (Unaudited) Sept. 30, 2008 Dec. 31, 2007 ------------ ------------ Assets Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost $ 556,721 $ 1,052,535 Available-for-sale, at fair value 77,021,610 90,530,946 Equity securities, available-for-sale, at fair value 12,066,559 14,586,066 Short-term investments 26,268,940 21,222,533 Other investments 2,207,869 1,634,301 ------------ ------------ Total investments 118,121,699 129,026,381 Cash and cash equivalents 6,302,937 3,000,762 Premiums and fees receivable, net 5,641,878 6,900,968 Accrued interest and dividends 966,346 1,254,641 Prepaid expenses and other assets 2,374,820 1,276,806 Property acquired in settlement of claims 395,734 278,476 Property, net 4,621,207 5,278,891 Deferred income taxes, net 3,136,788 2,625,495 ------------ ------------ Total Assets $141,561,409 $149,642,420 Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 37,290,000 $ 36,975,000 Accounts payable and accrued liabilities 10,746,536 11,236,781 Commissions and reinsurance payable 302,429 406,922 Current income taxes payable -- 1,747,877 ------------ ------------ Total liabilities 48,338,965 50,366,580 ------------ ------------ Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,298,546 and 2,411,318 shares issued and outstanding 2008 and 2007, respectively, excluding 291,676 shares for 2008 and 2007 of common stock held by the Company's subsidiary) 1 1 Retained earnings 92,534,330 95,739,827 Accumulated other comprehensive income 688,113 3,536,012 ------------ ------------ Total stockholders' equity 93,222,444 99,275,840 ------------ ------------ Total Liabilities and Stockholders' Equity $141,561,409 $149,642,420 Investors Title Company and Subsidiaries Net Premiums Written By State September 30, 2008 and 2007 (Unaudited) For the For the Three Months Ended Nine Months Ended September 30 September 30 State 2008 2007 2008 2007 ---------------------------- ----------- ----------- ----------- Illinois $ 429,954 $ 431,878 $ 1,584,507 $ 1,281,366 Kentucky 761,945 654,399 2,393,886 1,879,543 Michigan 781,939 771,564 2,732,501 2,349,750 New York 472,152 641,631 1,670,039 1,807,065 North Carolina 7,305,962 9,733,783 25,022,108 26,865,540 Pennsylvania 423,695 409,063 1,388,971 1,141,953 South Carolina 1,962,189 2,177,495 5,878,324 5,751,099 Tennessee 564,210 652,157 1,719,884 2,034,008 Virginia 1,492,819 1,713,647 4,701,446 4,846,803 West Virginia 504,672 531,815 1,617,107 1,545,567 Other 709,837 1,317,755 2,686,711 5,111,563 ----------- ----------- ----------- ----------- Direct Premiums $15,409,374 $19,035,187 $51,395,484 $54,614,257 Reinsurance Assumed 1,050 -- 97,594 11,667 Reinsurance Ceded (78,604) (40,734) (219,916) (212,750) ----------- ----------- ----------- ----------- Net Premiums Written $15,331,820 $18,994,453 $51,273,162 $54,413,174 Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency September 30, 2008 and 2007 (Unaudited) For The Three Months Ended For The Nine Months Ended September 30 September 30 ------------------------------- ------------------------------- 2008 % 2007 % 2008 % 2007 % ----------- --- ----------- --- ----------- --- ----------- --- Branch $ 5,680,591 37 $ 8,310,859 44 $19,920,404 39 $23,351,770 43 Agency 9,651,229 63 10,683,594 56 31,352,758 61 31,061,404 57 ----------- --- ----------- --- ----------- --- ----------- --- Total $15,331,820 100 $18,994,453 100 $51,273,162 100 $54,413,174 100 =========== === =========== === =========== === =========== ===
CONTACT: Investors Title Company Elizabeth B. Lewter (919) 968-2200