EXHIBIT 99.1
FOR IMMEDIATE RELEASE:
Chapel Hill, NC - J. Allen Fine, Chairman of Investors Title Company,
announced that for the quarter ended March 31, 2003, the Company reported record
first quarter revenues and net income. Net income increased 69% to $2,608,561
compared with $1,547,179 for the prior year period. Net income per diluted share
equaled $1.00 versus $.60 per diluted share in the same period last year. Net
premiums written increased 34% to $19,742,985 and revenues increased 31% to
$21,103,443 compared with the prior year period.
Chairman Fine added, "Operating results continued to be driven by low
interest rates and ongoing strength in mortgage lending. Mortgage interest rates
drifted lower from the levels of the previous quarter supporting both strong
demand for refinancing and home sales in the face of a sluggish economy. This
latest period marks the seventh consecutive record quarter for net income and
the ninth consecutive quarter for record revenue."
Investors Title Company is engaged in the business of issuing and
underwriting title insurance policies. Title insurance is typically sold when
real estate is purchased and upon refinancing of loans secured by real estate.
Policies are issued through twenty-eight company-owned branch offices and a
network of agents in twenty-four states and the District of Columbia. The
Company also provides services in connection with tax-free 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. 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, 2002, as filed with the Securities and Exchange
Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
March 31, 2003 and 2002
For The Three
Months Ended
March 31
----------------------------------
2003 2002
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Revenues:
Underwriting income:
Premiums Written $ 19,840,174 $ 14,783,848
Less-premiums for reinsurance ceded 97,189 103,123
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Net premiums written 19,742,985 14,680,725
Investment income-interest and dividends 674,578 669,038
Net realized gain on sales of investments 23,047 285,807
Other 662,833 434,003
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Total 21,103,443 16,069,573
-------------- -------------
Operating Expenses:
Commissions to agents 9,392,790 7,009,679
Provision for claims 2,083,038 1,679,411
Salaries, employee benefits and payroll taxes 3,547,057 2,938,591
Office occupancy and operations 1,097,116 1,200,397
Business development 380,952 388,121
Taxes, other than payroll and income 54,123 76,237
Premium and retaliatory taxes 421,286 329,766
Professional fees 207,344 210,255
Other 126,931 37,937
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Total 17,310,637 13,870,394
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Income Before Income Taxes 3,792,806 2,199,179
-------------- -------------
Provision For Income Taxes 1,184,245 652,000
-------------- -------------
Net Income $ 2,608,561 $ 1,547,179
============== =============
Basic Earnings Per Common Share $ 1.04 $ 0.61
============== =============
Weighted Average Shares Outstanding - Basic 2,513,507 2,516,555
============== =============
Diluted Earnings Per Common Share $ 1.00 $ 0.60
============== =============
Weighted Average Shares Outstanding - Diluted 2,610,242 2,585,773
============== =============
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2003 and December 31, 2002
March 31, 2003 December 31, 2002
-----------------------------------------------
Assets
Cash and cash equivalents $ 5,289,205 $ 3,781,961
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 4,191,196 4,395,081
Available-for-sale, at fair value 51,988,574 52,491,648
Equity securities, at fair value 7,761,187 7,884,928
Other investments 1,047,159 564,782
------------------- -------------------
Total investments 64,988,116 65,336,439
Premiums receivable, net 8,052,168 7,949,904
Accrued interest and dividends 652,101 720,902
Prepaid expenses and other assets 927,799 1,095,230
Property acquired in settlement of claims 759,431 749,562
Property, net 4,099,541 4,109,885
Deferred income taxes, net 681,540 893,263
------------------- -------------------
Total Assets $ 85,449,901 $ 84,637,146
=================== ===================
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 26,075,000 $ 25,630,000
Accounts payable and accrued liabilities 2,622,944 4,780,865
Commissions and reinsurance payables 298,871 401,040
Premium taxes payable 413,530 268,972
Current income taxes payable 997,963 888,085
------------------- -------------------
Total liabilities 30,408,308 31,968,962
------------------- -------------------
Stockholders' Equity:
Common stock - no par value (shares authorized
10,000,000; 2,510,379 and
2,515,804 shares issued and outstanding
2003 and 2002, respectively, excluding
345,365 and 339,940 shares 2003 and 2002,
respectively, of common stock held by the
Company's subsidiary) 1 1
Retained earnings 52,008,343 49,613,044
Accumulated other comprehensive income
(net unrealized gain on investments) 3,033,249 3,055,139
------------------- -------------------
Total stockholders' equity 55,041,593 52,668,184
------------------- -------------------
Total Liabilities and Stockholders' Equity $ 85,449,901 $ 84,637,146
=================== ===================
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three Months Ended March 31, 2003 and 2002
2003 2002
- ----------------------------------------------------------------------
Alabama $ 283,964 $ 144,395
Arkansas 12,018 -
District of Columbia 3,025 -
Florida 14,980 -
Georgia (9,487) (33,505)
Illinois 313,331 -
Indiana 86,965 2,984
Kentucky 431,100 257,156
Louisiana 1,204 -
Maryland 404,913 300,362
Michigan 1,896,418 2,227,176
Minnesota 607,769 392,241
Mississippi 237,484 223,025
Missouri 6,582 -
Nebraska 494,856 200,666
New Jersey 17,084 3,545
New York 1,412,888 825,582
North Carolina 7,067,357 5,229,578
Ohio 24,286 1,440
Pennsylvania 1,563,339 916,885
South Carolina 1,572,149 1,127,063
Tennessee 925,698 737,215
Virginia 2,024,708 1,831,338
West Virginia 444,058 382,719
Wisconsin (100) 3,330
----------------- -----------------
Direct Premiums 19,836,589 14,773,195
Reinsurance Assumed 3,585 10,653
Reinsurance Ceded (97,189) (103,123)
----------------- -----------------
Net Premiums Written $ 19,742,985 $ 14,680,725
================= =================
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
March 31, 2003 and 2002
For The Three Months Ended
March 31
---------------------------------------------------------------
2003 % 2002 %
---------------------------------------------------------------
Branch $ 7,109,473 36 $ 5,291,066 36
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Agency 12,633,512 64 9,389,659 64
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Total $19,742,985 100 $14,680,725 100
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