Exhibit 99.1
Investors Title Company Announces First Quarter 2009 Results
CHAPEL HILL, N.C., May 4, 2009 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the quarter ended March 31, 2009, the Company reported net income of $1,434,963, a decrease of 32.5% compared with $2,124,380 for the prior year period. Net income per diluted share equaled $0.62, a decrease of 28.7% compared with $0.87 per diluted share in the same period last year. Net premiums written decreased 7.9% to $16,409,820 and total revenues decreased 10.4% to $18,682,409 compared with the prior year period. Operating expenses decreased 6.3% to $16,903,446 compared with the prior year.
Revenues decreased over the prior year period primarily due to a decrease in net premiums written and investment income, and an increase in realized losses on impaired investments. Ongoing weakness in real estate sales led to the decline in net premiums written over prior year volume. This decline was partially offset by an uptick in refinance activity during the current quarter. The Company impaired approximately $345,000 of investments during the first quarter of 2009.
Chairman Fine added, "Premiums written received a significant boost from an increase in mortgage refinancing during the first quarter as interest rates remained at low levels. Nevertheless, the depressed real estate market continues to negatively affect purchase activity and overall title policy issuance. Claims expense remained stubbornly high as we continue to receive mechanic lien claims on property constructed during 2008. We are keeping a careful watch over evolving conditions in the current real estate climate."
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 risks, 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, 2008, as filed with the Securities and Exchange Commission.
The Investors Title Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3951
Investors Title Company and Subsidiaries Consolidated Statements of Income March 31, 2009 and 2008 (Unaudited) For The Three Months Ended March 31 ------------------------------ 2009 2008 ------------- ------------- Revenues: Underwriting income: Premiums Written $ 16,410,597 $ 17,903,762 Less-premiums for reinsurance ceded 777 90,402 ------------- ------------- Net premiums written 16,409,820 17,813,360 Investment income-interest and dividends 989,635 1,279,359 Net realized (loss) gain on investments (299,937) 118,569 Exchange services revenue 323,764 404,698 Other 1,259,127 1,244,933 ------------- ------------- Total Revenues 18,682,409 20,860,919 ------------- ------------- Operating Expenses: Commissions to agents 7,532,209 7,319,270 Provision for claims 2,047,126 2,048,596 Salaries, employee benefits and payroll taxes 5,138,176 5,497,936 Office occupancy and operations 1,098,582 1,366,373 Business development 262,817 485,451 Filing fees and taxes, other than payroll and income 157,051 192,629 Premium and retaliatory taxes 367,262 367,337 Professional and contract labor fees 302,013 521,409 Other (1,790) 236,538 ------------- ------------- Total Operating Expenses 16,903,446 18,035,539 ------------- ------------- Income Before Income Taxes 1,778,963 2,825,380 ------------- ------------- Provision For Income Taxes 344,000 701,000 ------------- ------------- Net Income $ 1,434,963 $ 2,124,380 ============= ============= Basic Earnings Per Common Share $ 0.63 $ 0.88 ============= ============= Weighted Average Shares Outstanding - Basic 2,293,951 2,412,499 ============= ============= Diluted Earnings Per Common Share $ 0.62 $ 0.87 ============= ============= Weighted Average Shares Outstanding - Diluted 2,296,041 2,437,195 ============= =============
Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2009 and December 31, 2008 (Unaudited) March 31, December 31, 2009 2008 ------------- ------------- Assets Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost $ 446,793 $ 451,681 Available-for-sale, at fair value 87,187,255 87,708,500 Equity securities, available-for-sale, at fair value 8,923,089 9,965,297 Short-term investments 15,701,808 15,725,513 Other investments 2,101,894 2,040,962 ------------- ------------- Total investments 114,360,839 115,891,953 Cash and cash equivalents 4,822,641 5,155,046 Premiums and fees receivable, net 6,614,428 4,933,797 Accrued interest and dividends 1,046,637 1,225,070 Prepaid expenses and other assets 3,760,409 3,992,975 Property acquired in settlement of claims 414,413 395,734 Property, net 4,200,366 4,422,318 Deferred income taxes, net 2,801,536 3,841,295 ------------- ------------- Total Assets $ 138,021,269 $ 139,858,188 ============= ============= Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 38,988,000 $ 39,238,000 Accounts payable and accrued liabilities 7,514,108 10,762,300 ------------- ------------- Total liabilities 46,502,108 50,000,300 ------------- ------------- Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,294,118 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 89,692,794 88,248,452 Accumulated other comprehensive income 1,826,366 1,609,435 ------------- ------------- Total stockholders' equity 91,519,161 89,857,888 ------------- ------------- Total Liabilities and Stockholders' Equity $ 138,021,269 $ 139,858,188 ============= =============
Investors Title Company and Subsidiaries Net Premiums Written By State For the Three Months Ended March 31, 2009 and 2008 (Unaudited) 2009 2008 ------------------------------------------------------- Illinois $ 1,091,590 $ 589,969 Kentucky 870,303 816,810 Michigan 852,273 1,045,827 New York 955,437 512,198 North Carolina 7,564,207 8,948,667 Pennsylvania 609,185 443,129 South Carolina 1,185,930 1,903,380 Tennessee 565,768 541,674 Virginia 1,227,764 1,521,794 West Virginia 547,581 470,898 Other States 939,759 1,013,072 ------------- ------------- Direct Premiums 16,409,797 17,807,418 Reinsurance Assumed 800 96,344 Reinsurance Ceded (777) (90,402) ------------- ------------- Net Premiums Written $ 16,409,820 $ 17,813,360 ============= =============
Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency March 31, 2009 and 2008 (Unaudited) For The Three Months Ended March 31 ------------------------------------- 2009 % 2008 % ------------------------------------- Branch $ 6,043,004 37 $ 7,364,830 41 Agency 10,366,816 63 10,448,530 59 ------------------------------------- Total $16,409,820 100 $17,813,360 100 =====================================
CONTACT: Investors Title Company Elizabeth B. Lewter (919) 968-2200