Exhibit 99.1
Investors Title Company Announces First Quarter 2006 Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--May 4, 2006--J. Allen Fine,
Chairman of Investors Title Company (NASDAQ:ITIC), announced that for
the quarter ended March 31, 2006, the Company reported net income of
$2,874,941, an increase of 82% compared with $1,580,494 for the prior
year period. Net income per diluted share equaled $1.11, an increase
of 85% compared with $.60 per diluted share in the same period last
year. Net premiums written decreased 3% to $16,631,626 and revenues
increased 4% to $20,178,848 compared with the prior year period.
Revenue slightly exceeded the prior year period primarily due to a
gain on the sale of investment securities, an increase in fee income
generated by our Trust division and an increase in investment income.
Income in the exchange segment also increased principally due to
higher levels of interest earned on exchange funds. Offsetting these
increases was a decline in our net premiums written resulting
predominantly from lower levels of real estate activity in our
operating territories.
Profit margin improved as operating expenses decreased 4%. An
increase in the percentage of premiums written directly through
branches offices resulted in a decrease in commission to agents. A
decline in compensation expense also contributed to the improvement in
our operating margins.
Chairman Fine added, "Overall we are pleased with our results for
the quarter which is typically a seasonally slow period of the year.
Much attention has been focused recently on the prospects for the
housing market. Although signs point to an overall slow down, home
sales have held up remarkably well. We remain focused on identifying
opportunities to extend our distribution base, operate more
efficiently and expand our related business lines."
Investors Title Company is engaged through its subsidiaries in the
business of issuing and underwriting title insurance policies. 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. Such statements include any predictions regarding
activity in the U.S. real estate market. 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, 2005, as filed with the Securities and
Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
March 31, 2006 and 2005
(Unaudited)
For The Three
Months Ended
March 31
-----------------------
2006 2005
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Revenues:
Underwriting income:
Premiums Written $16,746,269 $17,246,037
Less-premiums for reinsurance ceded 114,643 139,079
----------- -----------
Net premiums written 16,631,626 17,106,958
Investment income-interest and dividends 994,054 752,765
Net realized gain (loss) on sales of
investments 561,647 (10,894)
Exchange services revenue 1,027,732 809,639
Other 963,789 671,111
----------- -----------
Total 20,178,848 19,329,579
----------- -----------
Operating Expenses:
Commissions to agents 6,283,396 6,991,749
Provision for claims 1,855,279 1,899,005
Salaries, employee benefits and payroll
taxes 5,005,847 5,367,312
Office occupancy and operations 1,465,313 1,349,206
Business development 505,658 427,473
Taxes, other than payroll and income 150,885 110,754
Premium and retaliatory taxes 342,068 399,545
Professional fees 587,622 437,930
Other 218,839 45,111
----------- -----------
Total 16,414,907 17,028,085
----------- -----------
Income Before Income Taxes 3,763,941 2,301,494
----------- -----------
Provision For Income Taxes 889,000 721,000
----------- -----------
Net Income $ 2,874,941 $ 1,580,494
=========== ===========
Basic Earnings Per Common Share $ 1.13 $ 0.62
=========== ===========
Weighted Average Shares Outstanding - Basic 2,549,070 2,564,490
=========== ===========
Diluted Earnings Per Common Share $ 1.11 $ 0.60
=========== ===========
Weighted Average Shares Outstanding - Diluted 2,586,465 2,625,447
=========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2006 and December 31, 2005
(Unaudited)
March 31, December 31,
2006 2005
------------ ------------
Assets
Cash and cash equivalents $ 6,050,394 $ 14,608,481
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 1,548,505 1,648,708
Available-for-sale, at fair value 89,637,349 75,472,342
Equity securities, available-for-sale at
fair value 12,016,054 9,437,678
Short-term investments 1,541,527 7,257,734
Other investments 1,322,866 1,336,111
------------ ------------
Total investments 106,066,301 95,152,573
Premiums receivable, net 6,822,344 7,818,558
Accrued interest and dividends 1,029,136 1,010,198
Prepaid expenses and other assets 1,503,128 1,592,326
Property acquired in settlement of claims 413,480 359,980
Property, net 5,384,086 5,466,765
Deferred income taxes, net 2,731,959 2,462,647
------------ ------------
Total Assets $130,000,828 $128,471,528
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 35,551,000 $ 34,857,000
Accounts payable and accrued liabilities 6,688,423 7,928,384
Commissions and reinsurance payables 307,623 442,098
Current income taxes payable 979,123 946,790
------------ ------------
Total liabilities 43,526,169 44,174,272
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000;
2,548,115 and 2,549,434 shares issued and
outstanding 2006 and 2005, respectively,
excluding 295,361 and 297,783 shares 2006
and 2005, respectively, of common stock
held by the Company's subsidiary) 1 1
Retained earnings 84,118,443 81,477,022
Accumulated other comprehensive income (net
unrealized gain on investments) 2,356,215 2,820,233
------------ ------------
Total stockholders' equity 86,474,659 84,297,256
------------ ------------
Total Liabilities and Stockholders' Equity $130,000,828 $128,471,528
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three Months Ended March 31, 2006 and 2005
(Unaudited)
2006 2005
- ---------------------------------------------------------------------
Alabama $ 243,636 $ 350,730
Florida 278,335 309,609
Illinois 247,895 212,780
Kentucky 573,498 438,967
Maryland 373,769 372,646
Michigan 877,309 1,111,407
Minnesota 337,169 268,800
Mississippi 134,452 263,351
Nebraska 134,310 205,318
New York 503,596 586,005
North Carolina 8,441,482 7,758,779
Pennsylvania 315,912 378,825
South Carolina 1,402,073 2,047,893
Tennessee 666,323 567,848
Virginia 1,674,103 1,742,852
West Virginia 455,418 429,554
Other States 80,563 186,627
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Direct Premiums 16,739,843 17,231,991
Reinsurance Assumed 6,426 14,046
Reinsurance Ceded (114,643) (139,079)
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Net Premiums Written $ 16,631,626 $ 17,106,958
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Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
March 31, 2006 and 2005
(Unaudited)
For The Three Months Ended
March 31
-------------------------------------------------------------
2006 % 2005 %
-------------------------------------------------------------
Branch $7,727,025 46 $7,249,829 42
Agency 8,904,601 54 9,857,129 58
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Total $16,631,626 100 $17,106,958 100
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CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200