Exhibit 99.1
(Investors Title Company Announces Second Quarter 2005 Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--Aug. 4, 2005--Investors Title Company
(NASDAQ:ITIC) today announced results for the second quarter ended
June 30, 2005. The Company reported net income of $3,861,998, an
increase of 34% compared with $2,880,395 for the second quarter of
2004. Diluted earnings per share were $1.48 for the quarter ended June
30, 2005 versus $1.10 for the prior year quarter. Net premiums written
increased 1.7% to $20,006,395 and total revenues increased 6.4% to
$22,854,062 compared with the second quarter of 2004.
For the six-month period ended June 30, 2005, the Company reported
net income of $5,442,492, an increase of 6.7% compared with the same
six-month period in 2004. Diluted earnings per share were $2.08 versus
$1.94 in the prior year period. Net premiums written increased 1.2% to
$37,113,353 and total revenues increased 5.2% to $42,183,641 compared
with the same six-month period in 2004.
"Our net earnings represent an all time high for any quarter in
the Company's history", stated J. Allen Fine, Chairman of Investors
Title Company. "Ongoing low interest rates continue to fuel high
volumes of purchase transactions in residential and commercial
property. This strength in the real estate market has favorably
impacted revenue growth in our title insurance and 1031 exchange
divisions, largely offsetting the decline in mortgage refinance
lending. We continue to look for opportunities to expand market share
and to identify areas in internal operations where we can improve
operating efficiencies."
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 23
states and the District of Columbia. The Company also provides
services in connection with tax-deferred 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, 2004, as filed with the Securities and Exchange
Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
June 30, 2005 and 2004
(Unaudited)
For The Three For The Six
Months Ended Months Ended
June 30 June 30
----------------------- -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues:
Underwriting income:
Premiums Written $20,052,131 $19,763,410 $37,298,168 $36,827,576
Less-premiums for
reinsurance
ceded 45,736 93,782 184,815 163,308
----------- ----------- ----------- -----------
Net premiums written 20,006,395 19,669,628 37,113,353 36,664,268
Investment income-
interest and
dividends 808,559 662,556 1,561,324 1,318,931
Net realized gain on
sales of
investments 30,801 16,956 19,907 20,387
Exchange services
revenue 1,239,793 542,304 2,049,432 1,022,198
Other 768,514 590,043 1,439,625 1,072,272
----------- ----------- ----------- -----------
Total 22,854,062 21,481,487 42,183,641 40,098,056
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to agents 7,848,781 7,913,200 14,840,530 14,911,795
Provision for claims 2,172,108 2,185,024 4,071,113 4,029,403
Salaries, employee
benefits and payroll
taxes 4,413,567 4,328,260 9,780,879 8,176,165
Office occupancy
and operations 1,520,794 1,322,957 3,032,884 2,526,755
Business development 464,388 523,523 891,861 876,937
Taxes, other than
payroll and income 209,230 97,940 319,984 299,054
Premium and
retaliatory taxes 393,770 389,391 793,315 722,395
Professional fees 372,327 397,311 647,373 807,986
Other 66,099 16,693 111,210 54,567
----------- ----------- ----------- -----------
Total 17,461,064 17,174,299 34,489,149 32,405,057
----------- ----------- ----------- -----------
Income Before Income
Taxes 5,392,998 4,307,188 7,694,492 7,692,999
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,531,000 1,426,793 2,252,000 2,591,000
----------- ----------- ----------- -----------
Net Income $ 3,861,998 $ 2,880,395 $ 5,442,492 $ 5,101,999
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.51 $ 1.15 $ 2.12 $ 2.04
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,563,094 2,502,807 2,563,793 2,504,088
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.48 $ 1.10 $ 2.08 $ 1.94
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,607,611 2,618,477 2,616,418 2,628,431
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2005 and December 31, 2004
(Unaudited)
June 30, December 31,
2005 2004
--------------------------
Assets
Cash and cash equivalents $ 5,660,399 $ 4,726,443
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 1,755,475 2,202,635
Available-for-sale, at fair value 64,777,760 72,471,766
Equity securities, available-for-sale
at fair value 7,569,599 7,240,306
Short-term investments 19,668,548 10,134,321
Other investments 1,453,477 1,211,517
------------ ------------
Total investments 95,224,859 93,260,545
Premiums receivable, net 8,236,391 6,679,994
Accrued interest and dividends 865,290 753,638
Prepaid expenses and other assets 1,845,425 1,410,584
Property acquired in settlement of claims 261,317 322,517
Property, net 4,388,426 4,592,784
Deferred income taxes, net 1,307,177 1,440,247
------------ ------------
Total Assets $117,789,284 $113,186,752
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 33,149,000 $ 31,842,000
Accounts payable and accrued liabilities 5,976,355 7,919,651
Commissions and reinsurance payables 476,833 551,662
Current income taxes payable 356,030 366,168
------------ ------------
Total liabilities 39,958,218 40,679,481
------------ ------------
Stockholders' Equity:
Common stock - no par value
(shares authorized 10,000,000; 2,564,458
and 2,481,024 shares issued and
outstanding 2005 and 2004, respectively,
excluding 291,286 and 374,720 shares
2005 and 2004, respectively, of
common stock held by the
Company's subsidiary) 1 1
Retained earnings 74,644,650 69,272,092
Accumulated other comprehensive income
(net unrealized gain on investments) 3,186,415 3,235,178
------------ ------------
Total stockholders' equity 77,831,066 72,507,271
------------ ------------
Total Liabilities and Stockholders' Equity $117,789,284 $113,186,752
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
June 30, 2005 and 2004
(Unaudited)
For the Three Months For the Six Months
Ended Ended
June 30 June 30
----------------------- -----------------------
State 2005 2004 2005 2004
- --------------------- ------------------------ -----------------------
Alabama $ 379,273 $ 385,354 $ 730,003 $ 713,670
Florida 462,331 299,884 771,940 655,488
Illinois 278,550 285,394 491,330 549,122
Kentucky 545,873 469,178 984,840 869,208
Maryland 487,882 402,188 860,528 737,048
Michigan 1,273,971 1,357,627 2,385,378 2,580,427
Minnesota 259,992 271,224 528,792 517,584
Mississippi 298,242 266,542 561,593 512,817
Nebraska 180,377 236,882 385,695 455,806
New York 774,372 1,015,832 1,360,377 1,832,172
North Carolina 9,606,689 8,999,926 17,365,468 16,601,446
Pennsylvania 448,823 884,749 827,648 1,459,575
South Carolina 1,340,095 1,471,548 3,387,988 3,245,445
Tennessee 722,736 873,284 1,290,584 1,584,199
Virginia 2,211,161 1,872,162 3,954,013 3,320,600
West Virginia 582,511 488,153 1,012,065 863,081
Other 199,253 183,483 385,880 329,888
----------- ----------- ----------- -----------
Direct Premiums 20,052,131 19,763,410 37,284,122 36,827,576
Reinsurance Assumed - - 14,046 -
Reinsurance Ceded (45,736) (93,782) (184,815) (163,308)
----------- ----------- ----------- -----------
Net Premiums
Written $20,006,395 $19,669,628 $37,113,353 $36,664,268
=========== =========== =========== ===========
Investors Title Company and
Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2005 and 2004
(Unaudited)
For The Three Months Ended For The Six Months Ended
June 30 June 30
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2005 % 2004 % 2005 % 2004 %
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Branch $9,131,282 46 $8,848,520 45 $16,381,111 44 $16,320,815 45
Agency 10,875,113 54 10,821,108 55 20,732,242 56 20,343,453 55
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Total $20,006,395 100 $19,669,628 100 $37,113,353 100 $36,664,268 100
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CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200