Exhibit 99.1
Investors Title Company Announces All-Time Record Annual Earnings
CHAPEL HILL, N.C.--(BUSINESS WIRE)--xx--Investors Title Company
today announced operating results for the quarter and year ended
December 31, 2003. For the quarter ended December 31, 2003, net income
decreased 15% to $2,305,202 from $2,714,640, and diluted earnings per
share decreased 15% to $.88 from $1.04, all compared with the same
quarter in the prior year. Net premiums written decreased 12% to
$17,467,108 and total revenues decreased 10% to $19,298,546.
For the year ended December 31, 2003, net income increased 35% to
$10,965,014 or $4.18 per diluted share versus net income of $8,108,842
or $3.12 per diluted share in the prior year. Net premiums written
increased 25% to $83,927,312 and total revenues increased 25% to
$90,829,871.
"I am extremely pleased with the Company's financial results in
2003," said Chairman and CEO J. Allen Fine. "We achieved all-time
records for net income and revenue, and broke the $100 million mark in
assets. In the fourth quarter, net income and revenue were most
significantly impacted by the dramatic roll over in mortgage refinance
volume from the levels set mid-year. Interest rates rose off the lows
set earlier in the year and refinance activity declined on the order
of 75% from the record pace of originations in the second quarter.
Mortgage rates remain historically low, however, and transaction
activity in the residential and commercial real estate markets
remained healthy through 2003. "
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. Premiums are written
through 28 branch offices and a network of agents in 24 states and the
District of Columbia. The Company also provides services in connection
with tax-free exchanges of like-kind property as well as investment
management services to individuals, trusts, foundations and
businesses.
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 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, 2002, as filed with the Securities and Exchange
Commission.
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2003 and December 31, 2002
(Unaudited)
December 31, December 31,
2003 2002
-----------------------------------
Assets
Cash and cash equivalents $ 5,125,356 $ 3,781,961
Investments in securities:
Fixed maturities:
Held-to-maturity, at
amortized cost 3,526,030 4,395,081
Available-for-sale,
at fair value 60,803,807 52,491,648
Equity securities, at
fair value 14,556,785 7,884,928
Other investments 955,561 564,782
------------- -----------
Total investments 79,842,183 65,336,439
Premiums receivable, net 8,031,803 7,949,904
Accrued interest and dividends 667,147 720,902
Prepaid expenses and other assets 934,345 1,095,230
Property acquired in settlement
of claims 286,517 749,562
Property, net 4,099,243 4,109,885
Deferred income taxes, net 1,485,217 893,263
------------- -----------
Total Assets $ 100,471,811 $84,637,146
============= ===========
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 30,031,000 $25,630,000
Accounts payable and accrued
liabilities 5,782,470 4,780,865
Commissions and reinsurance
payables 726,191 401,040
Premium taxes payable 461,436 268,972
Current income taxes payable 281,968 888,085
------------- -----------
Total liabilities 37,283,065 31,968,962
------------- -----------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,503,923 and
2,515,804 shares issued and
outstanding 2003 and 2002,
respectively, excluding 351,821 and
339,940 shares 2003 and 2002,
respectively, of common stock held by
the Company's subsidiary) 1 1
Retained earnings 59,756,927 49,613,044
Accumulated other comprehensive
income (net unrealized gain on
investments) 3,431,818 3,055,139
------------- -----------
Total stockholders' equity 63,188,746 52,668,184
------------- -----------
Total Liabilities and
Stockholders' Equity $ 100,471,811 $84,637,146
============= ===========
Investors Title Company and Subsidiaries
Consolidated Statements of Income
December 31, 2003 and 2002
(Unaudited)
For The Three For The Twelve
Months Ended Months Ended
December 31 December 31
----------------------- -----------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues:
Underwriting income:
Premiums Written $17,600,672 $19,830,993 $84,365,541 $67,647,012
Less-premiums for
reinsurance ceded 133,564 25,719 438,229 348,395
----------- ----------- ----------- -----------
Net premiums
written 17,467,108 19,805,274 83,927,312 67,298,617
Investment income-
interest and
dividends 670,853 763,998 2,691,687 2,806,808
Net realized gain
(loss) on sales of
investments 192,674 (21,431) 258,718 279,301
Other 967,911 953,770 3,952,154 2,467,614
----------- ----------- ----------- -----------
Total 19,298,546 21,501,611 90,829,871 72,852,340
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 7,227,935 9,614,410 39,113,544 32,006,188
Provision for
claims 1,822,576 1,539,717 9,292,739 6,871,822
Salaries, employee
benefits and
payroll taxes 4,248,118 3,817,900 15,644,097 12,591,736
Office occupancy
and operations 1,364,840 1,271,847 5,149,386 4,810,283
Business development 430,329 603,707 1,905,609 2,161,928
Taxes, other than
payroll and income 70,726 123,293 347,186 387,594
Premium and
retaliatory taxes 333,410 391,434 1,680,952 1,378,880
Professional fees 354,584 204,616 1,137,648 772,096
Other 100,071 70,047 387,696 202,971
----------- ----------- ----------- -----------
Total 15,952,589 17,636,971 74,658,857 61,183,498
----------- ----------- ----------- -----------
Income Before Income
Taxes 3,345,957 3,864,640 16,171,014 11,668,842
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,040,755 1,150,000 5,206,000 3,560,000
----------- ----------- ----------- -----------
Net Income $ 2,305,202 $ 2,714,640 $10,965,014 $ 8,108,842
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 0.92 $ 1.08 $ 4.38 $ 3.22
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,503,689 2,517,254 2,503,659 2,517,328
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 0.88 $ 1.04 $ 4.18 $ 3.12
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,630,855 2,609,003 2,624,473 2,597,979
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Twelve Months Ended December 31, 2003 and 2002
(Unaudited)
2003 2002
- -------------------------------------------------------------------
Alabama $ 1,286,681 $ 654,345
Arkansas 21,523 58,455
District of Columbia 9,735 2,441
Florida 392,602 1,745
Georgia 135,226 125,580
Illinois 1,219,212 57,758
Indiana 320,191 296,471
Kentucky 1,800,258 1,282,772
Louisiana 2,786 -
Maryland 1,707,678 1,428,140
Michigan 7,230,906 9,492,665
Minnesota 2,186,522 1,180,153
Mississippi 1,092,772 1,011,538
Missouri 136,091 -
Nebraska 1,777,174 1,348,139
New Jersey 61,267 46,901
New York 5,605,642 3,911,191
North Carolina 31,102,294 24,112,712
Ohio 107,129 48,264
Pennsylvania 5,838,436 4,462,864
South Carolina 7,512,259 5,638,718
Tennessee 3,686,677 3,239,109
Virginia 9,101,185 7,577,229
West Virginia 2,025,557 1,638,306
Wisconsin (493) 10,776
------------ -----------
Direct Premiums 84,359,310 67,626,272
Reinsurance Assumed 6,231 20,740
Reinsurance Ceded (438,229) (348,395)
--------------------------
Net Premiums Written $ 83,927,312 $67,298,617
============ ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
December 31, 2003 and 2002
(Unaudited)
For The Three Months Ended
December 31
---------------------------------------------------------------
2003 % 2002 %
---------------------------------------------------------------
Branch $7,497,052 43 $7,093,695 36
Agency 9,970,056 57 12,711,579 64
---------------------------------------------------------------
Total $17,467,108 100 $19,805,274 100
===============================================================
For The Twelve Months Ended
December 31
-------------------------------------------------------------
2003 % 2002 %
-------------------------------------------------------------
Branch $31,072,768 37 $24,232,600 36
Agency 52,854,544 63 43,066,017 64
-------------------------------------------------------------
Total $83,927,312 100 $67,298,617 100
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CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200