EXHIBIT 99.1
Investors Title Company Announces Second Quarter 2009 Results
CHAPEL HILL, N.C., July 31, 2009 (GLOBE NEWSWIRE) -- J. Allen Fine, Chairman of Investors Title Company (Nasdaq:ITIC), announced that for the second quarter ended June 30, 2009, the Company reported net income of $2,115,473 compared with a net loss of $273,934 for the same three-month period in 2008. Net income per diluted share equaled $0.92 compared with a net loss per diluted share of $0.11 in the same period last year. Net premiums written increased 4.3% to $18,912,388, investment income decreased 13.7% to $960,454 and total revenues increased 6.2% to $21,620,559 compared with the prior year period.
For the six-month period ended June 30, 2009, the Company reported net income of $3,550,436, an increase of 91.9%, compared with $1,850,446 for the same six-month period in 2008. Diluted earnings per share was $1.54, an increase of 102.6% compared with $0.76 for the same six-month ended period in 2008. Net premiums written decreased 1.7% to $35,322,208, investment income decreased 18.5% to $1,950,089 and total revenues decreased 2.2% to $40,302,968 compared with the prior year period.
Operating results for the quarter ended June 30, 2009 showed improvement over the same period in 2008 due to increased premium revenue, a smaller provision for claims and decreases in other operating expenses which were primarily payroll related. Premiums written benefited from a lower mortgage interest rate environment during the first half of the year which spurred an increase in mortgage refinancing. The claims provision remained elevated relative to historic ranges due in part to the ongoing upward trend of mortgage foreclosures, but compared favorably to the prior year period due to a $2.4 million charge for a large fraud-related claim in that quarter.
"Although residential and commercial sales activity remained sluggish, the high level of mortgage refinance activity enabled us to increase premiums written over the prior year period," Chairman Fine added. "Premiums written through our agency network continued to grow as a percentage of our revenue and we are pleased with our progress in this area. Various cost cutting measures undertaken have resulted in a lower level of operating expenses and we continue to search for opportunity to reduce cost and improve our operating efficiency."
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.
The Investors Title Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3951
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, 2008, as filed with the Securities and Exchange Commission.
Investors Title Company and Subsidiaries Consolidated Statements of Income (Loss) June 30, 2009 and 2008 (Unaudited) For The Three For The Six Months Ended Months Ended June 30 June 30 ------------------------ ------------------------ 2009 2008 2009 2008 ---- ---- ---- ---- Revenues: Underwriting income: Premiums Written $18,945,561 $18,178,892 $35,356,158 $36,082,654 Less-premiums for reinsurance ceded 33,173 50,910 33,950 141,312 ----------- ----------- ----------- ----------- Net premiums written 18,912,388 18,127,982 35,322,208 35,941,342 Investment income- interest and dividends 960,454 1,112,681 1,950,089 2,392,040 Net realized gain (loss) on investments 9,995 (242,272) (289,942) (123,703) Exchange services revenue 300,963 66,714 624,727 471,412 Other 1,436,759 1,287,695 2,695,886 2,532,628 ----------- ----------- ----------- ----------- Total Revenues 21,620,559 20,352,800 40,302,968 41,213,719 ----------- ----------- ----------- ----------- Operating Expenses: Commissions to agents 8,831,742 7,949,938 16,363,951 15,269,208 Provision for claims 2,751,814 4,298,414 4,798,940 6,347,010 Salaries, employee benefits and payroll taxes 4,529,066 5,311,626 9,667,242 10,809,562 Office occupancy and operations 1,208,140 1,330,815 2,306,722 2,697,188 Business development 329,011 567,881 591,828 1,053,332 Filing fees and taxes, other than payroll and income 185,204 138,875 342,255 331,504 Premium and retaliatory taxes 375,510 451,728 742,772 819,065 Professional and contract labor fees 326,673 502,531 628,686 1,023,940 Other 214,926 301,926 213,136 538,464 ----------- ----------- ----------- ----------- Total Operating Expenses 18,752,086 20,853,734 35,655,532 38,889,273 ----------- ----------- ----------- ----------- Income (Loss) Before Income Taxes 2,868,473 (500,934) 4,647,436 2,324,446 ----------- ----------- ----------- ----------- Provision (Benefit) For Income Taxes 753,000 (227,000) 1,097,000 474,000 ----------- ----------- ----------- ----------- Net Income (Loss) $ 2,115,473 $ (273,934) $ 3,550,436 $ 1,850,446 =========== =========== =========== =========== Basic Earnings (Loss) Per Common Share $ 0.92 $ (0.11) $ 1.55 $ 0.77 =========== =========== =========== =========== Weighted Average Shares Outstanding - Basic 2,296,644 2,409,206 2,295,298 2,410,852 =========== =========== =========== =========== Diluted Earnings (Loss) Per Common Share $ 0.92 $ (0.11) $ 1.54 $ 0.76 =========== =========== =========== =========== Weighted Average Shares Outstanding - Diluted 2,296,644 2,409,206 2,300,017 2,434,204 =========== =========== =========== =========== Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2009 and December 31, 2008 (Unaudited) June 30, December 31, 2009 2008 ------------ ------------ Assets Investments in securities: Fixed maturities: Held-to-maturity, at amortized cost $ 446,907 $ 451,681 Available-for-sale, at fair value 85,803,489 87,708,500 Equity securities, available-for-sale, at fair value 10,392,874 9,965,297 Short-term investments 15,127,184 15,725,513 Other investments 2,400,932 2,040,962 ------------ ------------ Total investments 114,171,386 115,891,953 Cash and cash equivalents 8,120,607 5,155,046 Premiums and fees receivable, net 7,956,609 4,933,797 Accrued interest and dividends 1,151,634 1,225,070 Prepaid expenses and other assets 3,595,117 3,992,975 Property acquired in settlement of claims 378,884 395,734 Property, net 4,051,221 4,422,318 Deferred income taxes, net 2,261,779 3,841,295 ------------ ------------ Total Assets $141,687,237 $139,858,188 ============ ============ Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 39,583,000 $ 39,238,000 Accounts payable and accrued liabilities 7,800,818 10,762,300 ------------ ------------ Total liabilities 47,383,818 50,000,300 ------------ ------------ Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,297,207 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 91,859,793 88,248,452 Accumulated other comprehensive income 2,443,625 1,609,435 ------------ ------------ Total stockholders' equity 94,303,419 89,857,888 ------------ ------------ Total Liabilities and Stockholders' Equity $141,687,237 $139,858,188 ============ ============ Investors Title Company and Subsidiaries Net Premiums Written By State June 30, 2009 and 2008 (Unaudited) For the Three Months Ended For the Six Months Ended June 30 June 30 State 2009 2008 2009 2008 --------------------------------------------------------------------- Illinois $ 765,631 $ 564,584 $ 1,857,221 $ 1,154,553 Kentucky 949,874 815,131 1,820,177 1,631,941 Michigan 1,778,422 904,735 2,630,695 1,950,562 New York 880,406 685,689 1,835,843 1,197,887 North Carolina 8,293,158 8,767,479 15,857,365 17,716,146 Pennsylvania 876,633 522,147 1,485,818 965,276 South Carolina 1,345,921 2,012,755 2,531,851 3,916,135 Tennessee 752,791 614,000 1,318,559 1,155,674 Virginia 1,472,687 1,686,833 2,700,451 3,208,627 West Virginia 610,139 641,537 1,157,720 1,112,435 Other 1,219,899 963,802 2,159,658 1,976,874 ----------- ------------ ----------- ----------- Direct Premiums $18,945,561 $ 18,178,692 $35,355,358 $35,986,110 Reinsurance Assumed -- 200 800 96,544 Reinsurance Ceded (33,173) (50,910) (33,950) (141,312) ----------- ------------ ----------- ----------- Net Premiums Written $18,912,388 $ 18,127,982 $35,322,208 $35,941,342 =========== ============ =========== =========== Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency June 30, 2009 and 2008 (Unaudited) For The Three Months Ended For The Six Months Ended June 30 June 30 ------------------------------- ------------------------------- 2009 % 2008 % 2009 % 2008 % ------------------------------- ------------------------------- Branch $ 6,656,374 35 $ 6,901,291 38 $12,699,378 36 $14,266,121 40 Agency 12,256,014 65 11,226,691 62 22,622,830 64 21,675,221 60 ------------------------------- ------------------------------- Total $18,912,388 100 $18,127,982 100 $35,322,208 100 $35,941,342 100 =============================== ===============================
CONTACT: Investors Title Company Elizabeth B. Lewter (919) 968-2200