Exhibit 99.1
Investors Title Company Announces First Quarter 2007 Results
CHAPEL HILL, N.C.--(BUSINESS WIRE)--May 4, 2007--J. Allen Fine,
Chairman of Investors Title Company (NASDAQ: ITIC), announced that for
the quarter ended March 31, 2007, the Company reported net income of
$2,322,214, a decrease of 19% compared with $2,874,941 for the prior
year period. Net income per diluted share equaled $0.92, a decrease of
17% compared with $1.11 per diluted share in the same period last
year. Net premiums written increased 1% to $16,792,542 and revenues
increased 1% to $20,333,769 compared with the prior year period.
Revenues slightly exceeded the prior year period primarily due to
an increase in investment income and to a lesser extent, an increase
in net premiums written. Income in the exchange segment also increased
principally due to an increase in interest earned on exchange funds.
Profit margins and net income declined due to a decrease in the
net realized gain on sales of investments and a 6% increase in
operating expenses. The increase in operating expenses was primarily
the result of an increase in commissions to agents due to an increase
in agent premiums. Also contributing to the increase in operating
expenses was a small overall increase in salaries and employee
benefits.
Chairman Fine added, "Overall, we are pleased with our results for
the quarter, which is typically a seasonally slow period of the year.
We remain focused on identifying opportunities to extend our
distribution base, operate more efficiently and expand our 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 and investment management services to
individuals, companies, banks and trusts.
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, 2006, as filed with the Securities and
Exchange Commission.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
March 31, 2007 and 2006
(Unaudited)
For The Three
Months Ended
March 31
-----------------------
2007 2006
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Revenues:
Underwriting income:
Premiums Written $16,874,977 $16,746,269
Less-premiums for reinsurance ceded 82,435 114,643
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Net premiums written 16,792,542 16,631,626
Investment income-interest and dividends 1,209,607 994,054
Net realized gain on sales of investments 166,180 561,647
Exchange services revenue 1,245,479 1,027,732
Other 919,961 963,789
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Total Revenues 20,333,769 20,178,848
----------- -----------
Operating Expenses:
Commissions to agents 6,845,288 6,283,396
Provision for claims 1,809,433 1,855,279
Salaries, employee benefits and payroll
taxes 5,274,375 5,005,847
Office occupancy and operations 1,436,123 1,465,313
Business development 523,182 505,658
Filing fees and taxes, other than payroll
and income 165,213 150,858
Premium and retaliatory taxes 441,920 342,068
Professional and contract labor fees 645,010 587,622
Other 222,011 218,866 `
----------- -----------
Total Operating Expenses 17,362,555 16,414,907
----------- -----------
Income Before Income Taxes 2,971,214 3,763,941
----------- -----------
Provision For Income Taxes 649,000 889,000
----------- -----------
Net Income $ 2,322,214 $ 2,874,941
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Basic Earnings Per Common Share $ 0.93 $ 1.13
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Weighted Average Shares Outstanding - Basic 2,499,035 2,549,070
=========== ===========
Diluted Earnings Per Common Share $ 0.92 $ 1.11
=========== ===========
Weighted Average Shares Outstanding - Diluted 2,535,858 2,586,465
=========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of March 31, 2007 and December 31, 2006
(Unaudited)
March 31, Dec. 31,
2007 2006
-------------------------
Assets
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost $ 1,193,959 $ 1,195,617
Available-for-sale, at fair value 104,236,975 101,954,292
Equity securities, available-for-sale at
fair value 12,677,136 12,495,923
Short-term investments 2,122,879 4,460,911
Other investments 1,623,036 1,473,303
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Total investments 121,853,985 121,580,046
Cash and cash equivalents 3,414,489 3,458,432
Premiums and fees receivable, net 6,792,739 6,693,706
Accrued interest and dividends 1,204,662 1,336,790
Prepaid expenses and other assets 1,692,953 1,479,366
Property acquired in settlement of claims 303,538 303,538
Property, net 5,910,789 6,134,304
Deferred income taxes, net 2,308,436 2,530,196
------------ ------------
Total Assets $143,481,591 $143,516,378
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 37,133,000 $ 36,906,000
Accounts payable and accrued liabilities 9,522,465 10,537,992
Commissions and reinsurance payables 242,617 470,468
Current income taxes payable 333,704 326,255
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Total liabilities 47,231,786 48,240,715
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Stockholders' Equity:
Common stock - no par value (shares
authorized 10,000,000; 2,486,352 and
2,507,325 shares issued and outstanding
2007 and 2006, respectively, excluding
291,676 shares for 2007 and 2006 of
common stock held by the Company's
subsidiary) 1 1
Retained earnings 93,213,418 92,134,608
Accumulated other comprehensive income 3,036,386 3,141,054
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Total stockholders' equity 96,249,805 95,275,663
------------ ------------
Total Liabilities and Stockholders' Equity $143,481,591 $143,516,378
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
For the Three Months Ended March 31, 2007 and 2006
(Unaudited)
2007 2006
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Alabama $ 139,360 $ 243,636
Florida 828,547 278,335
Illinois 388,957 247,895
Kentucky 549,690 573,498
Maryland 286,871 373,769
Michigan 779,325 877,309
Minnesota 118,682 337,169
Mississippi 263,842 134,452
Nebraska 173,324 134,310
New York 506,759 503,596
North Carolina 7,913,473 8,441,482
Pennsylvania 326,654 315,912
South Carolina 1,716,400 1,402,073
Tennessee 649,390 666,323
Virginia 1,560,504 1,674,103
West Virginia 467,925 455,418
Other States 198,344 80,563
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Direct Premiums 16,868,047 16,739,843
Reinsurance Assumed 6,930 6,426
Reinsurance Ceded (82,435) (114,643)
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Net Premiums Written $16,792,542 $16,631,626
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Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
March 31, 2007 and 2006
(Unaudited)
For The Three Months Ended
March 31
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2007 % 2006 %
---------------------------------------------------
Branch $ 7,133,311 42 $ 7,727,025 46
Agency 9,659,231 58 8,904,601 54
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Total $16,792,542 100 $16,631,626 100
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CONTACT: Investors Title Company
Elizabeth B. Lewter, 919-968-2200