Exhibit 99.1
Investors Title Company Announces Third Quarter 2005 Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--Nov. 1, 2005--Investors Title
Company (NASDAQ:ITIC) today announced results for the third quarter
ended September 30, 2005. The Company reported net income of
$4,329,529, an increase of 47.9% compared with $2,927,864 for the
third quarter of 2004. Diluted earnings per share were $1.67 for the
quarter ended September 30, 2005 versus $1.12 for the prior year
quarter. Net premiums written increased 14.3% to $20,986,100 and total
revenues increased 17.2% to $24,033,323 compared with the third
quarter of 2004.
For the nine-month period ended September 30, 2005, the Company
reported net income of $9,772,021, an increase of 21.7% compared with
the same nine-month period in 2004. Diluted earnings per share were
$3.74 versus $3.06 in the prior year period. Net premiums written
increased 5.6% to $58,099,453 and total revenues increased 9.3% to
$66,216,964 compared with the same nine-month period in 2004.
"Net earnings for the period represent the second consecutive all
time new high reported for any quarter of the Company's operating
history", stated J. Allen Fine, Chairman of Investors Title Company.
"The overall low level of interest rates continued to fuel strong
demand for real estate during the third quarter. Although mortgage
rates trended slightly higher as the quarter progressed, activity for
the period remained strong. Strength in the real estate markets of our
operating territories drove the increases in revenue for both our
title insurance and Section 1031 exchange operating segments. Revenue
was also favorably impacted by an increase in investment income,
resulting primarily from higher rates of interest earned on short-term
investments."
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
September 30, 2005 and 2004
(Unaudited)
For The Three For The Nine
Months Ended Months Ended
September 30 September 30
------------------------ -----------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues:
Underwriting income:
Premiums written $21,035,519 $18,391,953 $58,333,687 $55,219,529
Less-premiums
for reinsurance
ceded 49,419 37,510 234,234 200,818
----------- ----------- ----------- -----------
Net premiums
written 20,986,100 18,354,443 58,099,453 55,018,711
Investment income-
interest and
dividends 812,659 603,584 2,373,983 1,922,515
Net realized gain
on sales of
investments 69,597 19,280 89,504 39,667
Exchange services
revenue 1,222,602 931,446 3,272,034 1,953,644
Other 942,365 594,571 2,381,990 1,666,843
----------- ----------- ----------- -----------
Total 24,033,323 20,503,324 66,216,964 60,601,380
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 8,209,799 7,372,112 23,050,329 22,283,907
Provision for
claims 2,283,372 2,110,152 6,354,485 6,139,555
Salaries,
employee
benefits and
payroll taxes 4,540,061 4,042,857 14,320,940 12,219,022
Office occupancy
and operations 1,320,550 1,294,766 4,353,434 3,821,521
Business
development 591,506 447,159 1,483,367 1,324,096
Taxes, other
than payroll
and income 67,234 42,823 387,218 341,877
Premium and
retaliatory
taxes 411,084 357,244 1,204,399 1,079,639
Professional fees 183,310 336,919 830,683 1,144,905
Other 186,878 84,428 298,088 138,995
----------- ----------- ----------- -----------
Total 17,793,794 16,088,460 52,282,943 48,493,517
----------- ----------- ----------- -----------
Income Before
Income Taxes 6,239,529 4,414,864 13,934,021 12,107,863
----------- ----------- ----------- -----------
Provision For
Income Taxes 1,910,000 1,487,000 4,162,000 4,078,000
----------- ----------- ----------- -----------
Net Income $ 4,329,529 $ 2,927,864 $ 9,772,021 $ 8,029,863
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.69 $ 1.17 $ 3.81 $ 3.21
=========== =========== =========== ===========
Weighted Average
Shares Outstanding -
Basic 2,559,154 2,493,786 2,562,247 2,500,654
=========== =========== =========== ===========
Diluted Earnings
Per Common Share $ 1.67 $ 1.12 $ 3.74 $ 3.06
=========== =========== =========== ===========
Weighted Average
Shares Outstanding -
Diluted 2,600,289 2,608,160 2,611,073 2,621,922
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2005 and December 31, 2004
(Unaudited)
September 30, December 31,
2005 2004
---------------------------
Assets
Cash and cash equivalents $ 6,165,400 $ 4,726,443
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized
cost 1,703,724 2,202,635
Available-for-sale, at fair value 62,511,297 72,471,766
Equity securities, available-for-sale
at fair value 7,962,143 7,240,306
Short-term investments 25,825,270 10,134,321
Other investments 1,346,311 1,211,517
------------- ------------
Total investments 99,348,745 93,260,545
Premiums receivable, net 8,958,003 6,679,994
Accrued interest and dividends 750,600 753,638
Prepaid expenses and other assets 2,005,707 1,410,584
Property acquired in settlement of claims 355,008 322,517
Property, net 4,417,201 4,592,784
Deferred income taxes, net 1,431,563 1,440,247
------------- ------------
Total Assets $ 123,432,227 $113,186,752
============= ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 34,308,000 $ 31,842,000
Accounts payable and accrued liabilities 7,130,514 7,919,651
Commissions and reinsurance payables 547,394 551,662
Current income taxes payable 193,410 366,168
------------- ------------
Total liabilities 42,179,318 40,679,481
------------- ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,557,711 and
2,481,024 shares issued and outstanding
2005 and 2004, respectively, excluding
298,033 and 374,720 shares 2005 and 2004,
respectively, of common stock held by
the Company's subsidiary) 1 1
Retained earnings 78,369,004 69,272,092
Accumulated other comprehensive income
(net unrealized gain on investments) 2,883,904 3,235,178
------------- ------------
Total stockholders' equity 81,252,909 72,507,271
------------- ------------
Total Liabilities and Stockholders'
Equity $ 123,432,227 $113,186,752
============= ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
September 30, 2005 and 2004
(Unaudited)
For the Three Months For the Nine Months
Ended Ended
September 30 September 30
----------------------- -----------------------
State 2005 2004 2005 2004
- ---------------------------------------------- -----------------------
Alabama $ 304,229 $ 297,717 $ 1,034,232 $ 1,011,387
Florida 410,075 243,128 1,182,015 898,616
Illinois 244,111 193,245 735,441 742,367
Kentucky 616,986 449,086 1,601,826 1,318,294
Maryland 471,464 414,501 1,331,992 1,151,549
Michigan 1,229,606 1,208,766 3,614,984 3,789,193
Minnesota 227,850 312,912 756,642 830,496
Mississippi 249,728 245,857 811,321 758,674
Nebraska 212,204 153,045 597,899 608,851
New York 998,587 869,203 2,358,964 2,701,375
North Carolina 10,111,914 8,439,442 27,477,382 25,040,888
Pennsylvania 460,000 615,729 1,287,648 2,075,304
South Carolina 1,748,951 1,625,811 5,136,939 4,871,256
Tennessee 775,812 750,156 2,066,396 2,334,355
Virginia 2,078,630 1,860,509 6,032,643 5,181,109
West Virginia 728,273 530,463 1,740,338 1,393,544
Other States 167,099 182,383 552,979 512,271
----------- ----------- ----------- -----------
Direct Premiums 21,035,519 18,391,953 58,319,641 55,219,529
Reinsurance Assumed - - 14,046 -
Reinsurance Ceded (49,419) (37,510) (234,234) (200,818)
----------- ----------- ----------- -----------
Net Premiums
Written $20,986,100 $18,354,443 $58,099,453 $55,018,711
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
September 30, 2005 and 2004
(Unaudited)
For The Three Months Ended For The Nine Months Ended
September 30 September 30
---------------------------------------------- --------------------------------------------
2005 % 2004 % 2005 % 2004 %
---------------------------------------------- --------------------------------------------
Branch $9,636,878 46 $8,163,258 44 $26,017,989 45 $24,484,073 45
Agency 11,349,222 54 10,191,185 56 32,081,464 55 30,534,638 55
---------------------------------------------- ------------------ -----------------------
Total $20,986,100 100 $18,354,443 100 $58,099,453 100 $55,018,711 100
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CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200