Exhibit 99.1
Investors Title Releases Second Quarter Earnings
CHAPEL HILL, N.C.--(BUSINESS WIRE)--July 24, 2003--J. Allen Fine,
Chairman of Investors Title Company (NASDAQ:ITIC), announced that for
the quarter ended June 30, 2003, the Company had an all-time record
quarter net income of $3,087,452, an increase of 82% compared with the
same quarter in 2002. Diluted earnings per share were $1.18 versus
$.65 in the prior year period. Net premiums written increased 57% to
$23,322,629 from $14,871,197 and total revenues increased 56% to
$25,179,643.
For the six-month period ended June 30, 2003, the Company reported
net income of $5,696,013, an increase of 75% compared with the same
six-month period in 2002. Diluted earnings per share were $2.18 versus
$1.25 in the prior year period. Net premiums written increased 45% to
$42,990,614 and total revenues increased 44% to $46,208,086.
Chairman Fine added, "This latest period marks the eighth
consecutive record quarter for net income and the tenth consecutive
quarter for record revenue. Revenue and earnings continued to be
driven by mortgage refinancing. Interest rates declined through the
period as fears persisted over possible deflation. In response to
lower rates, applications for mortgage refinancing surged to
unprecedented levels. Nationally, refinancings represented over 75% of
weekly mortgage applications at the end of the quarter."
Investors Title Company is engaged through its subsidiaries 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 28 company-owned branch offices and a network of agents
located across 24 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
June 30, 2003 and 2002
(Unaudited)
For The Three For The Six
Months Ended Months Ended
June 30 June 30
----------- -----------
2003 2002 2003 2002
----- ----- ----- -----
Revenues:
Underwriting income:
Premiums Written $23,415,757 $14,997,015 $43,180,931 $29,780,863
Less-premiums for
reinsurance ceded 93,128 125,818 190,317 228,941
----------- ----------- ----------- -----------
Net premiums written 23,322,629 14,871,197 42,990,614 29,551,922
Investment income-
interest and
dividends 679,857 692,781 1,354,435 1,361,819
Net realized gain on
sales of
investments 41,867 5,043 64,914 290,850
Other 1,135,290 523,066 1,798,123 957,069
----------- ----------- ----------- -----------
Total 25,179,643 16,092,087 46,208,086 32,161,660
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to agents 11,462,988 6,767,083 20,855,778 13,776,762
Provision for claims 2,687,693 1,703,640 4,770,731 3,383,051
Salaries, employee
benefits and payroll
taxes 3,708,942 2,729,169 7,255,999 5,667,760
Office occupancy
and operations 1,365,677 1,270,795 2,462,793 2,471,192
Business development 402,204 448,759 783,156 836,880
Taxes, other than
payroll and income 121,159 115,357 175,282 191,594
Premium and
retaliatory taxes 462,819 304,092 884,105 633,858
Professional fees 250,795 190,251 458,139 400,506
Other 147,914 67,343 199,845 105,280
----------- ----------- ----------- -----------
Total 20,610,191 13,596,489 37,845,828 27,466,883
----------- ----------- ----------- -----------
Income Before Income
Taxes 4,569,452 2,495,598 8,362,258 4,694,777
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,482,000 794,600 2,666,245 1,446,600
----------- ----------- ----------- -----------
Net Income $ 3,087,452 $ 1,700,998 $ 5,696,013 $ 3,248,177
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.24 $ 0.68 $ 2.27 $ 1.29
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,494,036 2,517,739 2,503,773 2,517,148
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.18 $ 0.65 $ 2.18 $ 1.25
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,619,743 2,600,191 2,616,098 2,593,565
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2003 and December 31, 2002
June 30, December 31,
2003 2002
(Unaudited) (Audited)
----------- -----------
Assets
Cash and cash equivalents $ 9,826,555 $ 3,781,961
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 3,818,218 4,395,081
Available-for-sale, at fair value 50,588,858 52,491,648
Equity securities, at fair value 8,075,922 7,884,928
Other investments 1,106,990 564,782
----------- -----------
Total investments 63,589,988 65,336,439
Premiums receivable, net 9,758,431 7,949,904
Accrued interest and dividends 674,478 720,902
Prepaid expenses and other assets 988,606 1,095,230
Property acquired in settlement of claims 771,687 749,562
Property, net 4,189,690 4,109,885
Deferred income taxes, net 633,577 893,263
----------- -----------
Total Assets $90,433,012 $84,637,146
=========== ===========
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $27,522,000 $25,630,000
Accounts payable and accrued liabilities 3,223,177 4,780,865
Commissions and reinsurance payables 390,747 401,040
Premium taxes payable 234,423 268,972
Current income taxes payable 809,463 888,085
----------- -----------
Total liabilities 32,179,810 31,968,962
----------- -----------
Stockholders' Equity:
Common stock - no par value (shares authorized
10,000,000; 2,498,939 and 2,515,804 shares
issued and outstanding 2003 and 2002,
respectively, excluding 356,805 and 339,940
shares 2003 and 2002,respectively, of
common stock held by the
Company's subsidiary) 1 1
Retained earnings 54,627,963 49,613,044
Accumulated other comprehensive income (net
unrealized gain on investments) 3,625,238 3,055,139
----------- -----------
Total stockholders' equity 58,253,202 52,668,184
----------- -----------
Total Liabilities and Stockholders' Equity $90,433,012 $84,637,146
=========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Six Months Ended June 30, 2003 and 2002
(Unaudited)
2003 2002
- -------------------------------------------------------------------
Alabama $ 645,527 $ 275,440
Arkansas 18,170 7,638
District of Columbia 6,274 -
Florida 25,150 -
Georgia 27,639 1,836
Illinois 756,449 -
Indiana 175,701 5,114
Kentucky 941,646 503,741
Louisiana 1,676 -
Maryland 975,414 636,148
Michigan 4,394,450 4,419,751
Minnesota 1,093,748 652,130
Mississippi 565,025 413,665
Missouri 19,218 -
Nebraska 1,163,552 387,291
New Jersey 41,266 11,943
New York 3,106,336 1,527,021
North Carolina 14,909,659 10,817,167
Ohio 65,129 11,673
Pennsylvania 3,297,694 1,551,870
South Carolina 3,272,382 2,616,019
Tennessee 2,029,754 1,521,794
Virginia 4,608,819 3,625,674
West Virginia 1,034,122 772,049
Wisconsin (100) 7,234
------------- ---------------
Direct Premiums 43,174,700 29,765,198
Reinsurance Assumed 6,231 15,665
Reinsurance Ceded (190,317) (228,941)
------------- ---------------
Net Premiums Written $ 42,990,614 $ 29,551,922
============= ===============
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2003 and 2002
(Unaudited)
For The Three Months Ended
June 30
------------------------------------------------------------
2003 % 2002 %
------------------------------------------------------------
Branch $7,996,257 34 $5,601,921 38
Agency 15,326,372 66 9,269,276 62
------------------------------------------------------------
Total $23,322,629 100 $14,871,197 100
============================================================
For The Six Months Ended
June 30
-------------------------------------------------------------
2003 % 2002 %
-------------------------------------------------------------
Branch $14,997,950 35 $10,892,987 37
Agency 27,992,664 65 18,658,935 63
-------------------------------------------- ----------------
Total $42,990,614 100 $29,551,922 100
============================================ ================
CONTACT: Investors Title Company
Elizabeth P. Bryan, 919-968-2200