Exhibit 99.1
Investors Title Company Announces Earnings
CHAPEL HILL, N.C.--(BUSINESS WIRE)--July 28, 2004--J. Allen Fine,
Chairman of Investors Title Company (NASDAQ:ITIC), announced that for
the quarter ended June 30, 2004, the Company had net income of
$2,880,395, a decrease of 7% compared with the same quarter in 2003.
Diluted earnings per share were $1.10 versus $1.18 in the prior year
period. Net premiums written decreased 16% to $19,649,652 from
$23,322,629 and total revenues decreased 15% to $21,481,487.
For the six-month period ended June 30, 2004, the Company reported
net income of $5,101,999, a decrease of 10% compared with the same
six-month period in 2003. Diluted earnings per share were $1.94 versus
$2.18 in the prior year period. Net premiums written decreased 15% to
$36,631,408 and total revenues decreased 13% to $40,098,056.
Chairman Fine added, "Premiums written declined primarily due to
significantly lower levels of mortgage refinancing compared with the
prior year quarter. Residential and commercial property activity
remained relatively strong compared with the prior year period. Total
revenues were positively impacted by the rate increase filed on
10/1/03 in North Carolina for insured closing services, and increased
exchange services revenue in our section 1031 exchange subsidiaries."
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 29 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
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 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, 2003, as filed with the Securities and Exchange
Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
June 30, 2004 and 2003
(Unaudited)
For The Three For The Six
Months Ended Months Ended
June 30 June 30
----------------------- ------------------------
2004 2003 2004 2003
Revenues:
Underwriting income:
Premiums Written $19,743,434 $23,415,757 $36,794,716 $43,180,931
Less-premiums for
reinsurance ceded 93,782 93,128 163,308 190,317
----------- ----------- ----------- -----------
Net premiums
written 19,649,652 23,322,629 36,631,408 42,990,614
Investment income-
interest and
dividends 691,996 679,857 1,365,322 1,354,435
Net realized gain
on sales of
investments 16,956 41,867 20,387 64,914
Exchange services
revenue 542,304 389,812 1,022,198 490,901
Other 580,579 745,478 1,058,741 1,307,222
----------- ----------- ----------- -----------
Total 21,481,487 25,179,643 40,098,056 46,208,086
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to agents 7,913,200 11,462,988 14,911,795 20,855,778
Provision for claims 2,185,024 2,687,693 4,029,403 4,770,731
Salaries, employee
benefits and
payroll taxes 4,328,260 3,708,942 8,176,165 7,255,999
Office occupancy
and operations 1,322,957 1,365,677 2,533,255 2,462,793
Business
development 523,523 402,204 876,937 783,156
Taxes, other
than payroll and income 97,940 121,159 299,054 175,282
Premium and retaliatory
taxes 389,391 462,819 722,395 884,105
Professional fees 408,871 250,795 819,546 458,139
Other 5,133 147,914 36,507 199,845
----------- ----------- ----------- -----------
Total 17,174,299 20,610,191 32,405,057 37,845,828
----------- ----------- ----------- -----------
Income Before Income
Taxes 4,307,188 4,569,452 7,692,999 8,362,258
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,426,793 1,482,000 2,591,000 2,666,245
----------- ----------- ----------- -----------
Net Income $ 2,880,395 $ 3,087,452 $ 5,101,999 $ 5,696,013
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.15 $ 1.24 $ 2.04 $ 2.27
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,502,807 2,494,036 2,504,088 2,503,773
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.10 $ 1.18 $ 1.94 $ 2.18
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,618,477 2,619,743 2,628,431 2,616,098
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2004 and December 31, 2003
June 30, 2004 Dec. 31, 2003
(Unaudited) (Audited)
------------- --------------
Assets
Cash and cash equivalents $ 5,013,645 $ 5,125,356
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized
cost 3,341,240 3,526,030
Available-for-sale, at fair value 71,188,047 60,803,807
Equity securities, at fair value 6,628,712 14,556,785
Other investments 1,280,494 955,561
------------ ------------
Total investments 82,438,493 79,842,183
Premiums receivable, net 7,995,639 8,031,803
Accrued interest and dividends 679,458 667,147
Prepaid expenses and other assets 1,488,550 934,345
Property acquired in settlement of
claims 286,517 286,517
Property, net 4,143,845 4,099,243
Deferred income taxes, net 1,172,598 1,485,217
------------ ------------
Total Assets $103,218,745 $100,471,811
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 30,476,000 $ 30,031,000
Accounts payable and accrued
liabilities 4,653,737 6,243,906
Commissions and reinsurance payables 489,598 726,191
Current income taxes payable 356,278 281,968
------------ ------------
Total liabilities 35,975,613 37,283,065
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,501,364
and 2,503,923 shares issued and
outstanding 2004 and 2003,respectively,
excluding 354,380 and 351,821
shares 2004 and 2003, respectively,
of common stock held by the Company's
subsidiary) 1 1
Retained earnings 64,435,785 59,756,927
Accumulated other comprehensive income
(net unrealized gain on investments) 2,807,346 3,431,818
------------ ------------
Total stockholders' equity 67,243,132 63,188,746
------------ ------------
Total Liabilities and Stockholders'
Equity $103,218,745 $100,471,811
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Six Months Ended June 30, 2004 and 2003
(Unaudited)
2004 2003
- -------------------------------------------------------------------
Alabama $ 713,670 $ 645,527
Arkansas (421) 18,170
District of Columbia 4,245 6,274
Florida 655,488 25,150
Georgia 40,300 27,639
Illinois 549,122 756,449
Indiana 80,343 175,701
Kentucky 869,208 941,646
Louisiana 30,943 1,676
Maryland 737,048 975,414
Michigan 2,580,427 4,394,450
Minnesota 517,584 1,093,748
Mississippi 512,817 565,025
Missouri 147,849 19,218
Nebraska 455,806 1,163,552
New Jersey 14,281 41,266
New York 1,832,172 3,106,336
North Carolina 16,568,586 14,909,659
Ohio 12,348 65,129
Pennsylvania 1,459,575 3,297,694
South Carolina 3,245,445 3,272,382
Tennessee 1,584,199 2,029,754
Virginia 3,320,600 4,608,819
West Virginia 863,081 1,034,122
Wisconsin - (100)
------------- ---------------
Direct Premiums 36,794,716 43,174,700
Reinsurance Assumed - 6,231
Reinsurance Ceded (163,308) (190,317)
------------- ---------------
Net Premiums Written $ 36,631,408 $ 42,990,614
============= ===============
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2004 and 2003
(Unaudited)
For The Three Months Ended
June 30
----------------------------------------------
2004 % 2003 %
----------------------------------------------
Branch $8,828,544 45 $7,996,257 34
Agency 10,821,108 55 15,326,372 66
----------------------------------------------
Total $19,649,652 100 $23,322,629 100
==============================================
For The Six Months Ended
June 30
-----------------------------------------------
2004 % 2003 %
-----------------------------------------------
Branch $16,287,955 44 $14,997,950 35
Agency 20,343,453 56 27,992,664 65
-------------------- --------------------------
Total $36,631,408 100 $42,990,614 100
==================== ==========================
CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200