American Land Title Association
Home  >  News Room
News Room


SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software


Investors Title Company Announces Second Quarter 2007 Results

August 7, 2007

CHAPEL HILL, N.C.,-- J. Allen Fine, Chairman of Investors Title Company (NasdaqGM:ITIC), announced that for the second quarter ended June 30, 2007, the Company reported net income of $1,154,149, a decrease of 73.3% compared with $4,315,537 for the same three-month period in 2006. Net income per diluted share equaled $0.46, a decrease of 72.6% compared with $1.68 per diluted share in the same period last year. Net premiums written decreased 2.6% to $18,626,179, investment income increased 22.9% to $1,271,755 and revenues decreased 4.4% to $22,107,533 compared with the prior year period.

For the six-month period ended June 30, 2007, the Company reported net income of $3,476,363, a decrease of 51.7%, compared with $7,190,478 for the same six-month period in 2006. Diluted earnings per share were $1.38, a decrease of 50.5% compared with $2.79 for the same six-month ended period in 2006. Net premiums written decreased 0.9% to $35,418,721, investment income increased 22.3% to $2,481,362 and revenues decreased 2.0% to $42,441,302 compared with the prior year.

Chairman Fine added, ``Net income was significantly impacted by an increase in the provision for claims resulting from the occurrence of two large fraud claims. Revenues in the title segment held up relatively well given ongoing weakness in real estate transaction volume and mortgage originations. The exchange services segment experienced a decline in revenue related to a decrease in demand and interest income earned on exchange funds. Commissions to agents were higher due to an increase in agency premiums.''

``We are pleased to see some relative strength in revenue in our title segment given the soft conditions in the housing market,'' Fine continued, ``and will continue to direct our efforts toward managing operations during a softening period for real estate activity.''

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.




Investors Title Company and Subsidiaries Consolidated Statements of Income June 30, 2007 and 2006
(Unaudited)

         
   For The Three Months Ended
June 30 
For The Six Months Ended
June 30 
Revenues:
      2007
      2006
      2007
      2006
   Underwriting income:        
   Premiums Written $18,715,760  $19,222,175  $35,590,737  $35,968,444
   Less-premiums for reinsurance  ceded 89,581  98,584 172,016 
213,227
  ----------- ---------- ---------- ----------
   Net premiums written  18,626,179
19,123,591 
35,418,721 
35,755,217
   Investment  income-interest and dividends 1,271,755 1,034,696 2,481,362 
2,028,750
   Net realized gain (loss) on sales of investments  200,023 (17,190)  366,203 
544,457
   Exchange services  revenue  
870,083  
1,908,357 2,115,562 
2,936,089
   Other  1,139,493 1,077,167 2,059,454 
2,040,956
  ---------- ---------- ---------- ----------
      Total Revenues 22,107,533
23,126,621
42,441,302
43,305,469
  ---------- ---------- ---------- ----------
         
Operating Expenses:        
   Commissions to agents
7,733,004 
7,289,322 14,578,292  13,572,718
   Provision for claims
4,352,005  
2,030,412  
6,161,438  
3,885,691
   Salaries, employee benefits and payroll taxes 5,091,139 
4,917,022 
10,365,514
9,922,869
   Office occupancy and operations
1,452,901 
1,266,042
2,889,024 
2,731,355
   Business development  556,734  547,505 1,079,916 1,053,163
   Filing fees and taxes, other than payroll and income 293,708
126,455
142,850
291,668
   Premium and retaliatory taxes 670,610
395,262
328,542
837,182
   Professional and contract labor fees   1,325,156
826,140
737,534
1,471,150
   Other  
278,744
222,885
500,755
441,751
  ---------- ---------- ---------- ----------
Total Operating        
Expenses 
20,812,384 
17,482,114 
38,174,939 
33,897,021
----------- ----------- ----------- -----------
       
  Income Before Income Taxes 
1,295,149 
5,644,507 
4,266,363 
9,408,448
----------- ----------- ----------- -----------
         
  Provision For Income Taxes 
141,000 
1,328,970  790,000 2,217,970
----------- ----------- ----------- -----------
  Net Income  $ 1,154,149 $ 4,315,537 $ 3,476,363 $ 7,190,478
  =========== ---------- ---------- ----------
  Basic Earnings Per Common Share $ 0.46 $ 1.70 $ 1.40 $ 2.83
=========== =========== =========== ===========
   Weighted Average Shares Outstanding - Basic
2,484,874 
2,537,883 
2,491,955 
2,543,475
=========== =========== =========== ===========
    Diluted Earnings        
    Per Common Share $ 0.46 $ 1.68 $ 1.38 $ 2.79
=========== =========== =========== ===========
Weighted Average Shares Outstanding - Diluted 
2,518,206 
2,572,062 
2,526,844 
2,578,743
=========== =========== =========== ==========
         

 

Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2007 and December 31, 2006 (Unaudited)



Assets Investments in securities:    
  June 30,2007 December 31,2006
Fixed Maturities: 
   
Held-to-maturity, at amortized cost     
$  1,194,304 $  1,195,617
Available-for-sale, at fair value       
105,281,130 101,954,292
Equity securities, available-for-sale at fair value
13,492,236
12,495,923
Short-term investments                    
1,733,603 
4,460,911
Other investments                        
1,736,647  
1,473,303
  ------------ ------------
Total investments                    
123,437,920
121,580,046
     
Cash and cash equivalents               
3,169,702
3,458,432
     
Premiums and fees receivable, net         
7,901,074
6,693,706
Accrued interest and dividends          
1,303,050
1,336,790
Prepaid expenses and other assets           
1,554,422
1,479,366
Property acquired in settlement of claims  
312,038
303,538
Property, net                              
5,650,209
6,134,304
Deferred income taxes, net            
3,388,953
2,530,196
------------ ------------
     
Total Assets 
$146,717,368 $143,516,378
  ============ ============
     
Liabilities and Stockholders' Equity
  Liabilities:    
   Reserves for claims           
   Accounts payable and accrued liabilities  $ 40,560,000 $ 36,906,000
   Commissions and reinsurance payables 
9,062,960 
10,537,992
   Current income taxes payable 
277,052 
470,468
 ------------
185,879 
326,255
Total liabilities 
50,085,891 48,240,715











Stockholders' Equity: 

Common stock - no par value (shares authorized 10,000,000; 2,483,415 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)                                       

     
Retained earnings                          
92,134,608
93,960,059
Accumulated other comprehensive income      
2,671,417 
3,141,054
------------ ------------ ------------
Total stockholders' equity           96,631,477
95,275,663
  ------------ ------------
     
Total Liabilities and Stockholders' Equity $146,717,368 $143,516,378

Source: The Investors Title Company



Print Friendly


How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
www.alta.org
service@alta.org
Copyright © 2004-2014 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment