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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Investors Title Company | NASDAQ:ITIC | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.29 | 0.69% | 187.34 | 186.00 | 190.00 | 188.00 | 187.20 | 187.20 | 1,381 | 15:11:11 |
North Carolina
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56-1110199
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Securities registered pursuant to section 12(b) of the Act:
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Name of each exchange on which registered:
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Common Stock, no par value
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The NASDAQ Stock Market LLC
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Rights to Purchase Series A Junior Participating Preferred Stock
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The NASDAQ Stock Market LLC
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Large accelerated filer
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Accelerated filer
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X
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Non-accelerated filer
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(Do not check if a smaller reporting company)
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Smaller reporting company
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Emerging growth company
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•
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changes in general economic, business, and political conditions, including the performance of the financial and real estate markets and potential reform of government sponsored entities;
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•
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the level of real estate transaction volumes, the level of mortgage origination volumes (including refinancing) and changes to the insurance requirements of the participants in the secondary mortgage market, and the effect of these factors on the demand for title insurance;
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•
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the possible inadequacy of provisions for claims to cover actual claim losses;
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•
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the incidence of fraud-related losses;
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•
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unanticipated adverse changes in securities markets could result in material losses to the Company’s investments;
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•
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significant competition that the Company’s operating subsidiaries face, including the Company’s ability to develop and offer products and services that meet changing industry standards in a timely and cost-effective manner and expansion into new geographic locations;
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•
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the Company’s reliance upon the North Carolina and Texas markets for a significant portion of its premiums, comprising approximately 38.3% and 19.1% of premiums written, respectively;
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•
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compliance with government regulation, including pricing regulation, and significant changes to applicable regulations or in their application by regulators;
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•
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the impact of governmental oversight of compliance of the Company’s service providers, including the application of financial regulation designed to protect consumers;
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•
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possible downgrades from a rating agency, which could result in a loss of underwriting business;
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•
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the inability of the Company to manage, develop and implement technological advancements and prevent system interruptions or unauthorized system intrusions;
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•
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statutory requirements applicable to the Company’s insurance subsidiaries that require them to maintain minimum levels of capital, surplus and reserves and that restrict the amount of dividends they may pay to the Company without prior regulatory approval;
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•
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the desire to maintain capital above statutory minimum requirements for competitive, marketing and other reasons;
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•
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heightened regulatory scrutiny and investigations of the title insurance industry;
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•
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the Company’s dependence on key management and marketing personnel, the loss of whom could have a material adverse effect on the Company’s business;
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•
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difficulty managing growth, whether organic or through acquisitions;
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•
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unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets;
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•
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policies and procedures for the mitigation of risks may be insufficient to prevent losses;
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•
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the shareholder rights plan could discourage transactions involving actual or potential changes of control; and
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•
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other risks detailed elsewhere in this document and in the Company’s other filings with the SEC.
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Item 1.
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Business
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|
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Executive Officers of the Company
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Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Shares
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Item 6.
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Selected Financial Data
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 8.
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Financial Statements and Supplementary Data
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Item 9.
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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Item 9A.
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Controls and Procedures
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Item 9B.
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Other Information
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Item 10.
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Directors, Executive Officers and Corporate Governance
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Item 11,
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Executive Compensation
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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Item 14.
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Principal Accountant Fees and Services
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Item 15.
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Exhibits, Financial Statement Schedules
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Item 16.
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Form 10-K Summary
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Signatures
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||
Index to Exhibits
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Name
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Age
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Position with Registrant
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J. Allen Fine
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83
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Chief Executive Officer and Chairman of the Board
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James A. Fine, Jr.
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55
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President, Treasurer, Chief Financial Officer, Chief Accounting Officer and Director
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W. Morris Fine
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51
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Executive Vice President, Secretary and Director
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•
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licensing of insurers and agents;
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•
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capital and surplus requirements;
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•
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approval, regulation or establishment of premium rates for insurance;
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•
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limitations on types and amounts of investments;
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•
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limitations on the size of risks that may be insured by a single company;
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•
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filing of annual and other reports with respect to financial condition;
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•
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the amount of dividends and other payments made by insurance subsidiaries;
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•
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establishing reserves;
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•
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accounting and financing practices;
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•
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deposits of securities for the benefit of policyholders;
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•
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trade and marketing practices;
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•
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regulation of reinsurance;
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•
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approval of policy forms; and
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•
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use of personal information.
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•
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process title insurance applications and policy issuances;
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•
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perform due diligence on land titles;
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•
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manage substantial cash, investment assets, bank deposits, trust assets and escrow account balances on behalf of the Company and its customers;
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•
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manage billing, collections and payables, including insurance premiums, agent commissions;
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•
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manage accounting and financial reporting; and
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•
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manage payroll and human resources information.
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•
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hacking, computer viruses, malware, ransomware or other cyber-attacks;
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•
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software “bugs”, hardware defects or human error;
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•
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natural disasters, like fires; or
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•
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power loss.
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2017
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2016
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||||||||||||||||||||
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High
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Low
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Dividend Paid
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High
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Low
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Dividend Paid
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||||||||||||
First Quarter
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$
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163.34
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$
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118.10
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$
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0.20
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$
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99.89
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$
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76.35
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$
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0.16
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Second Quarter
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$
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199.75
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$
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153.71
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$
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0.35
|
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$
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106.80
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|
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$
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82.13
|
|
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$
|
0.16
|
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Third Quarter
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$
|
196.79
|
|
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$
|
169.25
|
|
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$
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0.40
|
|
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$
|
102.70
|
|
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$
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88.70
|
|
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$
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0.20
|
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Fourth Quarter
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$
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203.97
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$
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178.50
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$
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2.80
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$
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174.10
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|
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$
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93.78
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|
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$
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0.20
|
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For the Year
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2017
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2016
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2015
|
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2014
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2013
|
||||||||||
Net premiums written
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$
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138,589
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$
|
120,569
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|
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$
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111,909
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$
|
109,567
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|
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$
|
113,669
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Investment income
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4,444
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4,684
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4,531
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4,260
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3,895
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|||||
Revenues
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161,649
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138,492
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127,200
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123,119
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126,251
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|||||
Net income attributable to the Company
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25,707
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19,523
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12,534
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9,649
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14,708
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|||||
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||||||||||
Per Share Data
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||||||||||
Basic earnings per common share
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$
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13.63
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$
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10.23
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$
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6.32
|
|
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$
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4.75
|
|
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$
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7.15
|
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Weighted average shares outstanding
–
Basic
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1,886
|
|
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1,908
|
|
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1,984
|
|
|
2,032
|
|
|
2,056
|
|
|||||
Diluted earnings per common share
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$
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13.56
|
|
|
$
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10.19
|
|
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$
|
6.30
|
|
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$
|
4.74
|
|
|
$
|
7.08
|
|
Weighted average shares outstanding
–
Diluted
|
1,896
|
|
|
1,915
|
|
|
1,990
|
|
|
2,038
|
|
|
2,077
|
|
|||||
Cash dividends per share
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$
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3.75
|
|
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$
|
0.72
|
|
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$
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0.40
|
|
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$
|
0.32
|
|
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$
|
0.32
|
|
|
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||||||||||
At Year-End
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||||||||||
Assets
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$
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248,913
|
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$
|
228,938
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|
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$
|
211,522
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$
|
198,039
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|
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$
|
188,306
|
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Investments
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186,520
|
|
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160,854
|
|
|
160,552
|
|
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159,411
|
|
|
142,764
|
|
|||||
Stockholders’ equity attributable to the Company
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177,835
|
|
|
155,045
|
|
|
142,670
|
|
|
137,564
|
|
|
128,062
|
|
|||||
Book value/share attributable to the Company
|
94.29
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|
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82.28
|
|
|
73.17
|
|
|
67.99
|
|
|
62.86
|
|
|||||
|
|
|
|
|
|
|
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|
||||||||
Performance Ratios
|
|
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|
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|
||||||||||
Net income attributable to the Company to:
|
|
|
|
|
|
|
|
|
|
||||||||||
Average stockholders’ equity attributable to the Company
|
15.44
|
%
|
|
13.12
|
%
|
|
8.95
|
%
|
|
7.27
|
%
|
|
12.12
|
%
|
|||||
Total revenues
|
15.90
|
%
|
|
14.10
|
%
|
|
9.85
|
%
|
|
7.84
|
%
|
|
11.65
|
%
|
Increase in loss ratio of three percentage points
|
$
|
(2,702,000
|
)
|
Decrease in loss ratio of three percentage points
|
$
|
2,702,000
|
|
•
|
the duration and extent to which the fair value has been less than cost;
|
•
|
with respect to equity securities, whether the Company’s ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; and
|
•
|
with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value.
|
For the Years Ended December 31,
|
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Net premiums written
|
|
$
|
138,588,877
|
|
|
$
|
120,569,151
|
|
|
$
|
111,909,473
|
|
Investment income – interest and dividends
|
|
4,444,447
|
|
|
4,684,489
|
|
|
4,531,319
|
|
|||
Net realized gain (loss) on investments
|
|
1,040,901
|
|
|
768,436
|
|
|
(116,163
|
)
|
|||
Other
|
|
17,575,071
|
|
|
12,470,338
|
|
|
10,875,443
|
|
|||
Total Revenues
|
|
161,649,296
|
|
|
138,492,414
|
|
|
127,200,072
|
|
|||
|
|
|
|
|
|
|
||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
||||
Commissions to agents
|
|
68,643,220
|
|
|
63,643,321
|
|
|
62,174,301
|
|
|||
Provision for claims
|
|
3,311,080
|
|
|
242,953
|
|
|
4,478,494
|
|
|||
Salaries, employee benefits and payroll taxes
|
|
39,012,354
|
|
|
31,372,099
|
|
|
28,041,213
|
|
|||
Office occupancy and operations
|
|
8,966,623
|
|
|
6,265,908
|
|
|
5,885,336
|
|
|||
Business development
|
|
3,164,730
|
|
|
2,511,699
|
|
|
2,373,270
|
|
|||
Filing fees, franchise and local taxes
|
|
1,198,013
|
|
|
907,225
|
|
|
732,985
|
|
|||
Premium and retaliatory taxes
|
|
2,672,034
|
|
|
2,202,595
|
|
|
2,161,571
|
|
|||
Professional and contract labor fees
|
|
1,825,598
|
|
|
2,115,754
|
|
|
2,691,411
|
|
|||
Other
|
|
2,585,074
|
|
|
1,099,408
|
|
|
884,438
|
|
|||
Total Operating Expenses
|
|
131,378,726
|
|
|
110,360,962
|
|
|
109,423,019
|
|
|||
|
|
|
|
|
|
|
||||||
Income before Income Taxes
|
|
30,270,570
|
|
|
28,131,452
|
|
|
17,777,053
|
|
|||
|
|
|
|
|
|
|
||||||
Provision for Income Taxes
|
|
4,570,000
|
|
|
8,616,000
|
|
|
5,228,000
|
|
|||
|
|
|
|
|
|
|
||||||
Net Income Attributable to the Company
|
|
$
|
25,706,502
|
|
|
$
|
19,523,118
|
|
|
$
|
12,533,905
|
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|||||||||
Title Insurance
|
$
|
149,716,397
|
|
|
95.9
|
%
|
|
$
|
127,228,426
|
|
|
95.6
|
%
|
|
$
|
117,281,588
|
|
|
95.5
|
%
|
All Other
|
6,447,551
|
|
|
4.1
|
%
|
|
5,811,063
|
|
|
4.4
|
%
|
|
5,503,328
|
|
|
4.5
|
%
|
|||
Total
|
$
|
156,163,948
|
|
|
100.0
|
%
|
|
$
|
133,039,489
|
|
|
100.0
|
%
|
|
$
|
122,784,916
|
|
|
100.0
|
%
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|||||||||
Home and Branch
|
$
|
40,244,394
|
|
|
29.0
|
%
|
|
$
|
33,482,154
|
|
|
27.8
|
%
|
|
$
|
27,834,881
|
|
|
24.9
|
%
|
Agency
|
98,344,483
|
|
|
71.0
|
%
|
|
87,086,997
|
|
|
72.2
|
%
|
|
84,074,592
|
|
|
75.1
|
%
|
|||
Total
|
$
|
138,588,877
|
|
|
100.0
|
%
|
|
$
|
120,569,151
|
|
|
100.0
|
%
|
|
$
|
111,909,473
|
|
|
100.0
|
%
|
State
|
2017
|
|
2016
|
|
2015
|
||||||
North Carolina
|
$
|
53,194,503
|
|
|
$
|
42,868,773
|
|
|
$
|
36,407,413
|
|
Texas
|
26,545,852
|
|
|
24,162,213
|
|
|
25,211,496
|
|
|||
South Carolina
|
14,353,567
|
|
|
12,249,382
|
|
|
11,290,945
|
|
|||
Georgia
|
12,790,161
|
|
|
10,981,062
|
|
|
7,682,820
|
|
|||
Virginia
|
5,970,194
|
|
|
6,052,602
|
|
|
5,706,769
|
|
|||
All Others
|
25,996,003
|
|
|
24,378,815
|
|
|
25,791,094
|
|
|||
Premiums Written
|
138,850,280
|
|
|
120,692,847
|
|
|
112,090,537
|
|
|||
Reinsurance Assumed
|
2,756
|
|
|
17,246
|
|
|
33,603
|
|
|||
Reinsurance Ceded
|
(264,159
|
)
|
|
(140,942
|
)
|
|
(214,667
|
)
|
|||
Net Premiums Written
|
$
|
138,588,877
|
|
|
$
|
120,569,151
|
|
|
$
|
111,909,473
|
|
|
2017
|
|
%
|
|
2016
|
|
%
|
|
2015
|
|
%
|
|||||||||
Title Insurance
|
$
|
123,558,870
|
|
|
94.0
|
%
|
|
$
|
103,828,173
|
|
|
94.1
|
%
|
|
$
|
102,895,701
|
|
|
94.0
|
%
|
All Other
|
7,819,856
|
|
|
6.0
|
%
|
|
6,532,789
|
|
|
5.9
|
%
|
|
6,527,318
|
|
|
6.0
|
%
|
|||
Total
|
$
|
131,378,726
|
|
|
100.0
|
%
|
|
$
|
110,360,962
|
|
|
100.0
|
%
|
|
$
|
109,423,019
|
|
|
100.0
|
%
|
|
|
|
Payments due by period
|
||||||||||||||||
Contractual Obligations Including Off-Balance Sheet Arrangements
|
Total
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
||||||||||
Reserve for claims
|
$
|
34,801,000
|
|
|
$
|
5,881,369
|
|
|
$
|
9,744,280
|
|
|
$
|
6,612,190
|
|
|
$
|
12,563,161
|
|
Obligations under executive employment plans and agreements
|
9,992,442
|
|
|
115,665
|
|
|
28,256
|
|
|
40,751
|
|
|
9,807,770
|
|
|||||
Operating lease obligations
|
4,766,948
|
|
|
1,190,734
|
|
|
1,880,447
|
|
|
1,355,305
|
|
|
340,462
|
|
|||||
Other obligations
|
1,118,359
|
|
|
838,013
|
|
|
225,346
|
|
|
55,000
|
|
|
—
|
|
|||||
Total
|
$
|
50,678,749
|
|
|
$
|
8,025,781
|
|
|
$
|
11,878,329
|
|
|
$
|
8,063,246
|
|
|
$
|
22,711,393
|
|
2017
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net premiums written
|
$
|
32,298,596
|
|
|
$
|
34,168,504
|
|
|
$
|
36,941,189
|
|
|
$
|
35,180,588
|
|
Net income
|
4,466,180
|
|
|
5,674,023
|
|
|
5,926,615
|
|
|
9,633,752
|
|
||||
Net income attributable to the Company
|
4,476,055
|
|
|
5,675,192
|
|
|
5,926,457
|
|
|
9,628,798
|
|
||||
Basic earnings per common share
|
2.37
|
|
|
3.01
|
|
|
3.14
|
|
|
5.11
|
|
||||
Diluted earnings per common share
|
2.36
|
|
|
2.99
|
|
|
3.13
|
|
|
5.08
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2016
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net premiums written
|
$
|
21,430,397
|
|
|
$
|
29,621,053
|
|
|
$
|
36,306,522
|
|
|
$
|
33,211,179
|
|
Net income
|
1,804,461
|
|
|
4,530,047
|
|
|
8,129,167
|
|
|
5,051,777
|
|
||||
Net income attributable to the Company
|
1,814,040
|
|
|
4,529,380
|
|
|
8,126,939
|
|
|
5,052,759
|
|
||||
Basic earnings per common share
|
0.94
|
|
|
2.36
|
|
|
4.30
|
|
|
2.68
|
|
||||
Diluted earnings per common share
|
0.93
|
|
|
2.35
|
|
|
4.29
|
|
|
2.67
|
|
||||
|
|
|
|
|
|
|
|
||||||||
2015
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
Net premiums written
|
$
|
24,811,813
|
|
|
$
|
30,309,705
|
|
|
$
|
30,845,991
|
|
|
$
|
25,941,964
|
|
Net income
|
1,726,124
|
|
|
4,120,497
|
|
|
4,495,498
|
|
|
2,206,934
|
|
||||
Net income attributable to the Company
|
1,726,124
|
|
|
4,120,497
|
|
|
4,490,962
|
|
|
2,196,322
|
|
||||
Basic earnings per common share
|
0.86
|
|
|
2.06
|
|
|
2.28
|
|
|
1.13
|
|
||||
Diluted earnings per common share
|
0.86
|
|
|
2.05
|
|
|
2.28
|
|
|
1.12
|
|
As of December 31,
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Investments in securities:
|
|
|
|
||||
Fixed maturities, available-for-sale, at fair value (amortized cost: December 31, 2017: $100,314,085; December 31, 2016: $100,162,357)
|
$
|
103,341,083
|
|
|
$
|
101,934,077
|
|
Equity securities, available-for-sale, at fair value (cost: December 31, 2017: $26,002,619; December 31, 2016: $24,836,032)
|
47,366,826
|
|
|
41,179,259
|
|
||
Short-term investments
|
23,779,672
|
|
|
6,558,840
|
|
||
Other investments
|
12,032,426
|
|
|
11,181,531
|
|
||
Total investments
|
186,520,007
|
|
|
160,853,707
|
|
||
|
|
|
|
||||
Cash and cash equivalents
|
20,214,468
|
|
|
27,928,472
|
|
||
Premium and fees receivable
|
10,159,519
|
|
|
8,654,161
|
|
||
Accrued interest and dividends
|
1,099,879
|
|
|
1,035,152
|
|
||
Prepaid expenses and other assets
|
9,003,683
|
|
|
9,456,523
|
|
||
Property, net
|
10,172,904
|
|
|
8,753,466
|
|
||
Goodwill and other intangible assets, net
|
11,357,290
|
|
|
12,256,641
|
|
||
Current income taxes receivable
|
385,109
|
|
|
—
|
|
||
Total Assets
|
$
|
248,912,859
|
|
|
$
|
228,938,122
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Reserve for claims
|
$
|
34,801,000
|
|
|
$
|
35,305,000
|
|
Accounts payable and accrued liabilities
|
27,565,660
|
|
|
26,146,480
|
|
||
Current income taxes payable
|
—
|
|
|
1,232,432
|
|
||
Deferred income taxes, net
|
8,625,759
|
|
|
11,118,256
|
|
||
Total liabilities
|
70,992,419
|
|
|
73,802,168
|
|
||
|
|
|
|
||||
Commitments and Contingencies
|
—
|
|
|
—
|
|
||
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
|
|
||
Preferred stock (1,000,000 authorized shares; no shares issued)
|
—
|
|
|
—
|
|
||
Common stock – no par value (10,000,000 authorized shares; 1,885,993 and 1,884,283 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively, excluding in each period 291,676 shares of common stock held by the Company)
|
1
|
|
|
1
|
|
||
Retained earnings
|
161,890,660
|
|
|
143,283,621
|
|
||
Accumulated other comprehensive income
|
15,944,826
|
|
|
11,761,447
|
|
||
Total stockholders’ equity attributable to the Company
|
177,835,487
|
|
|
155,045,069
|
|
||
Noncontrolling interests
|
84,953
|
|
|
90,885
|
|
||
Total stockholders’ equity
|
177,920,440
|
|
|
155,135,954
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
248,912,859
|
|
|
$
|
228,938,122
|
|
For the Years Ended December 31,
|
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Net premiums written
|
|
$
|
138,588,877
|
|
|
$
|
120,569,151
|
|
|
$
|
111,909,473
|
|
Investment income – interest and dividends
|
|
4,444,447
|
|
|
4,684,489
|
|
|
4,531,319
|
|
|||
Net realized gain (loss) on investments
|
|
1,040,901
|
|
|
768,436
|
|
|
(116,163
|
)
|
|||
Other
|
|
17,575,071
|
|
|
12,470,338
|
|
|
10,875,443
|
|
|||
Total Revenues
|
|
161,649,296
|
|
|
138,492,414
|
|
|
127,200,072
|
|
|||
|
|
|
|
|
|
|
||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
||||
Commissions to agents
|
|
68,643,220
|
|
|
63,643,321
|
|
|
62,174,301
|
|
|||
Provision for claims
|
|
3,311,080
|
|
|
242,953
|
|
|
4,478,494
|
|
|||
Salaries, employee benefits and payroll taxes
|
|
39,012,354
|
|
|
31,372,099
|
|
|
28,041,213
|
|
|||
Office occupancy and operations
|
|
8,966,623
|
|
|
6,265,908
|
|
|
5,885,336
|
|
|||
Business development
|
|
3,164,730
|
|
|
2,511,699
|
|
|
2,373,270
|
|
|||
Filing fees, franchise and local taxes
|
|
1,198,013
|
|
|
907,225
|
|
|
732,985
|
|
|||
Premium and retaliatory taxes
|
|
2,672,034
|
|
|
2,202,595
|
|
|
2,161,571
|
|
|||
Professional and contract labor fees
|
|
1,825,598
|
|
|
2,115,754
|
|
|
2,691,411
|
|
|||
Other
|
|
2,585,074
|
|
|
1,099,408
|
|
|
884,438
|
|
|||
Total Operating Expenses
|
|
131,378,726
|
|
|
110,360,962
|
|
|
109,423,019
|
|
|||
|
|
|
|
|
|
|
||||||
Income before Income Taxes
|
|
30,270,570
|
|
|
28,131,452
|
|
|
17,777,053
|
|
|||
|
|
|
|
|
|
|
|
|||||
Provision for Income Taxes
|
|
4,570,000
|
|
|
8,616,000
|
|
|
5,228,000
|
|
|||
|
|
|
|
|
|
|
|
|||||
Net Income
|
|
25,700,570
|
|
|
19,515,452
|
|
|
12,549,053
|
|
|||
|
|
|
|
|
|
|
|
|||||
Net Loss (Income) Attributable to Noncontrolling Interests
|
|
5,932
|
|
|
7,666
|
|
|
(15,148
|
)
|
|||
|
|
|
|
|
|
|
|
|||||
Net Income Attributable to the Company
|
|
$
|
25,706,502
|
|
|
$
|
19,523,118
|
|
|
$
|
12,533,905
|
|
|
|
|
|
|
|
|
|
|||||
Basic Earnings per Common Share
|
|
$
|
13.63
|
|
|
$
|
10.23
|
|
|
$
|
6.32
|
|
|
|
|
|
|
|
|
|
|||||
Weighted Average Shares Outstanding – Basic
|
|
1,886,354
|
|
|
1,907,675
|
|
|
1,984,360
|
|
|||
|
|
|
|
|
|
|
|
|||||
Diluted Earnings per Common Share
|
|
$
|
13.56
|
|
|
$
|
10.19
|
|
|
$
|
6.30
|
|
|
|
|
|
|
|
|
|
|||||
Weighted Average Shares Outstanding – Diluted
|
|
1,895,871
|
|
|
1,915,057
|
|
|
1,989,799
|
|
|||
|
|
|
|
|
|
|
|
|||||
Cash Dividends Paid per Common Share
|
|
$
|
3.75
|
|
|
$
|
0.72
|
|
|
$
|
0.40
|
|
For the Years Ended December 31,
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
|
$
|
25,700,570
|
|
|
$
|
19,515,452
|
|
|
$
|
12,549,053
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
||||
Amortization related to prior year service cost
|
|
—
|
|
|
—
|
|
|
4,390
|
|
|||
Amortization of unrecognized loss
|
|
8,612
|
|
|
8,941
|
|
|
3,514
|
|
|||
Accumulated postretirement expense (benefit) obligation adjustment
|
|
69,634
|
|
|
(566
|
)
|
|
(63,566
|
)
|
|||
Unrealized gains (losses) on investments arising during the period
|
|
7,478,490
|
|
|
1,145,529
|
|
|
(2,077,542
|
)
|
|||
Reclassification adjustment for sale of securities included in net income
|
|
(1,227,265
|
)
|
|
(972,672
|
)
|
|
(718,837
|
)
|
|||
Reclassification adjustment for write-down of securities included in net income
|
|
25,411
|
|
|
233,941
|
|
|
751,059
|
|
|||
Other comprehensive income (loss), before tax
|
|
6,354,882
|
|
|
415,173
|
|
|
(2,100,982
|
)
|
|||
Income tax expense (benefit) related to postretirement health benefits
|
|
26,602
|
|
|
2,849
|
|
|
(18,924
|
)
|
|||
Income tax expense (benefit) related to unrealized gains (losses) on investments arising during the year
|
|
2,555,694
|
|
|
387,508
|
|
|
(722,226
|
)
|
|||
Income tax benefit related to reclassification adjustment for sale of securities included in net income
|
|
(419,462
|
)
|
|
(333,426
|
)
|
|
(245,200
|
)
|
|||
Income tax expense related to reclassification adjustment for write-down of securities included in net income
|
|
8,669
|
|
|
79,810
|
|
|
258,862
|
|
|||
Net income tax expense (benefit) on other comprehensive income (loss)
|
|
2,171,503
|
|
|
136,741
|
|
|
(727,488
|
)
|
|||
Other comprehensive income (loss)
|
|
4,183,379
|
|
|
278,432
|
|
|
(1,373,494
|
)
|
|||
Comprehensive Income
|
|
$
|
29,883,949
|
|
|
$
|
19,793,884
|
|
|
$
|
11,175,559
|
|
Less: Comprehensive loss (income) attributable to noncontrolling interests
|
|
5,932
|
|
|
7,666
|
|
|
(15,148
|
)
|
|||
Comprehensive Income Attributable to the Company
|
|
$
|
29,889,881
|
|
|
$
|
19,801,550
|
|
|
$
|
11,160,411
|
|
|
Common Stock
|
|
Retained Earnings
|
|
|
Accumulated
Other Comprehensive Income |
|
|
Noncontrolling Interests
|
|
|
Total
Stockholders’ Equity |
|
|||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2015
|
2,023,270
|
|
|
$
|
1
|
|
|
$
|
124,707,196
|
|
|
$
|
12,856,509
|
|
|
$
|
—
|
|
|
$
|
137,563,706
|
|
Net income attributable to the Company
|
|
|
|
|
|
|
12,533,905
|
|
|
|
|
|
|
|
12,533,905
|
|
||||||
Dividends paid ($0.40 per share)
|
|
|
|
|
|
|
(789,907
|
)
|
|
|
|
|
|
|
(789,907
|
)
|
||||||
Shares of common stock repurchased and retired
|
(75,665
|
)
|
|
|
|
|
(5,483,953
|
)
|
|
|
|
|
|
|
(5,483,953
|
)
|
||||||
Stock options and stock appreciation rights exercised
|
2,192
|
|
|
|
|
|
54,988
|
|
|
|
|
|
|
|
54,988
|
|
||||||
Share-based compensation expense
|
|
|
|
|
|
|
137,762
|
|
|
|
|
|
|
|
137,762
|
|
||||||
Amortization related to postretirement health benefits
|
|
|
|
|
|
|
|
|
|
5,216
|
|
|
|
|
5,216
|
|
||||||
Accumulated postretirement benefit obligation adjustment
|
|
|
|
|
|
|
(41,954
|
)
|
|
|
|
(41,954
|
)
|
|||||||||
Net unrealized loss on investments
|
|
|
|
|
|
|
|
|
|
(1,336,756
|
)
|
|
|
|
(1,336,756
|
)
|
||||||
Net effect changes of ownership
|
|
|
|
|
|
|
|
|
127,050
|
|
|
127,050
|
|
|||||||||
Subsidiary return of capital
|
|
|
|
|
|
|
|
|
(35,000
|
)
|
|
(35,000
|
)
|
|||||||||
Net income attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
15,148
|
|
|
15,148
|
|
|||||||||
Income tax benefit from share-based compensation
|
|
|
|
|
26,875
|
|
|
|
|
|
|
|
26,875
|
|
||||||||
Balance, December 31, 2015
|
1,949,797
|
|
|
$
|
1
|
|
|
$
|
131,186,866
|
|
|
$
|
11,483,015
|
|
|
$
|
107,198
|
|
|
$
|
142,777,080
|
|
Net income attributable to the Company
|
|
|
|
|
|
|
19,523,118
|
|
|
|
|
|
|
|
19,523,118
|
|
||||||
Dividends paid ($0.72 per share)
|
|
|
|
|
|
|
(1,370,390
|
)
|
|
|
|
|
|
|
(1,370,390
|
)
|
||||||
Shares of common stock repurchased and retired
|
(66,803
|
)
|
|
|
|
|
(6,219,670
|
)
|
|
|
|
|
|
|
(6,219,670
|
)
|
||||||
Stock options and stock appreciation rights exercised
|
1,289
|
|
|
|
|
|
(200
|
)
|
|
|
|
|
|
|
(200
|
)
|
||||||
Share-based compensation expense
|
|
|
|
|
|
|
132,098
|
|
|
|
|
|
|
|
132,098
|
|
||||||
Amortization related to postretirement health benefits
|
|
|
|
|
|
|
|
|
|
5,900
|
|
|
|
|
5,900
|
|
||||||
Accumulated postretirement benefit obligation adjustment
|
|
|
|
|
|
|
(374
|
)
|
|
|
|
(374
|
)
|
|||||||||
Net unrealized gain on investments
|
|
|
|
|
|
|
|
|
|
272,906
|
|
|
|
|
272,906
|
|
||||||
Purchase of noncontrolling interest of subsidiary
|
|
|
|
|
|
|
|
|
(8,647
|
)
|
|
(8,647
|
)
|
|||||||||
Additional paid-in capital from purchase of non-controlling interest of subsidiary
|
|
|
|
|
(494
|
)
|
|
|
|
|
|
(494
|
)
|
|||||||||
Net loss attributable to noncontrolling interests
|
|
|
|
|
|
|
|
|
(7,666
|
)
|
|
(7,666
|
)
|
|||||||||
Income tax benefit from share-based compensation
|
|
|
|
|
|
|
32,293
|
|
|
|
|
|
|
|
32,293
|
|
||||||
Balance, December 31, 2016
|
1,884,283
|
|
|
$
|
1
|
|
|
$
|
143,283,621
|
|
|
$
|
11,761,447
|
|
|
$
|
90,885
|
|
|
$
|
155,135,954
|
|
Net income attributable to the Company
|
|
|
|
|
|
|
25,706,502
|
|
|
|
|
|
|
|
25,706,502
|
|
||||||
Dividends paid ($3.75 per share)
|
|
|
|
|
|
|
(7,073,210
|
)
|
|
|
|
|
|
|
(7,073,210
|
)
|
||||||
Shares of common stock repurchased and retired
|
(1,333
|
)
|
|
|
|
|
(244,831
|
)
|
|
|
|
|
|
|
(244,831
|
)
|
||||||
Stock options and stock appreciation rights exercised
|
3,043
|
|
|
|
|
|
(737
|
)
|
|
|
|
|
|
|
(737
|
)
|
||||||
Share-based compensation expense
|
|
|
|
|
|
|
219,315
|
|
|
|
|
|
|
|
219,315
|
|
||||||
Amortization related to postretirement health benefits
|
|
|
|
|
|
|
|
|
5,686
|
|
|
|
|
5,686
|
|
|||||||
Accumulated postretirement benefit obligation adjustment
|
|
|
|
|
|
|
|
|
45,958
|
|
|
|
|
45,958
|
|
|||||||
Net unrealized gain on investments
|
|
|
|
|
|
|
|
|
|
4,131,735
|
|
|
|
|
4,131,735
|
|
For the Years Ended December 31,
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
25,700,570
|
|
|
$
|
19,515,452
|
|
|
$
|
12,549,053
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|||
Depreciation
|
1,434,771
|
|
|
1,306,643
|
|
|
1,105,839
|
|
|||
Amortization of investments, net
|
788,390
|
|
|
772,100
|
|
|
728,510
|
|
|||
Amortization of other intangible assets
|
916,684
|
|
|
213,795
|
|
|
—
|
|
|||
Amortization related to postretirement benefits obligation
|
8,612
|
|
|
8,941
|
|
|
7,904
|
|
|||
Share-based compensation expense related to stock appreciation rights and options
|
219,315
|
|
|
132,098
|
|
|
137,762
|
|
|||
Net gain on disposals of property
|
(22,499
|
)
|
|
(12,439
|
)
|
|
(24,867
|
)
|
|||
Net realized (gain) loss on securities
|
(1,201,854
|
)
|
|
(738,731
|
)
|
|
32,222
|
|
|||
Net realized gains on other investments
|
(21,714
|
)
|
|
(29,705
|
)
|
|
(149,128
|
)
|
|||
Net realized loss on impairments of other assets and other investments
|
182,667
|
|
|
—
|
|
|
233,069
|
|
|||
Net earnings from other investments
|
(1,672,790
|
)
|
|
(1,750,485
|
)
|
|
(2,002,276
|
)
|
|||
Provision for claims
|
3,311,080
|
|
|
242,953
|
|
|
4,478,494
|
|
|||
(Benefit) provision for deferred income taxes
|
(4,664,000
|
)
|
|
2,790,000
|
|
|
1,015,000
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|||
(Increase) decrease in receivables
|
(1,505,358
|
)
|
|
(261,464
|
)
|
|
217,594
|
|
|||
Decrease (increase) in other assets
|
388,113
|
|
|
2,631,205
|
|
|
(4,879,418
|
)
|
|||
Increase in current income taxes recoverable
|
(385,109
|
)
|
|
—
|
|
|
—
|
|
|||
Increase (decrease) in accounts payable and accrued liabilities
|
1,463,814
|
|
|
(581,518
|
)
|
|
6,689,204
|
|
|||
(Decrease) increase in current income taxes payable
|
(1,232,432
|
)
|
|
1,054,370
|
|
|
145,038
|
|
|||
Payments of claims, net of recoveries
|
(3,815,080
|
)
|
|
(2,725,953
|
)
|
|
(3,367,494
|
)
|
|||
Net cash provided by operating activities
|
19,893,180
|
|
|
22,567,262
|
|
|
16,916,506
|
|
|||
|
|
|
|
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
|
||||
Purchases of available-for-sale securities
|
(23,066,396
|
)
|
|
(19,424,849
|
)
|
|
(20,164,353
|
)
|
|||
Purchases of short-term securities
|
(26,413,954
|
)
|
|
(1,775,239
|
)
|
|
(4,593,240
|
)
|
|||
Purchases of other investments
|
(1,873,398
|
)
|
|
(2,743,413
|
)
|
|
(3,717,978
|
)
|
|||
Investment in subsidiary
|
—
|
|
|
(9,141
|
)
|
|
(72,600
|
)
|
|||
Proceeds from sales and maturities of available-for-sale securities
|
22,126,726
|
|
|
20,258,089
|
|
|
22,151,408
|
|
|||
Proceeds from sales and maturities of short-term securities
|
9,227,942
|
|
|
2,081,805
|
|
|
304,827
|
|
|||
Proceeds from sales and distributions of other investments
|
2,695,670
|
|
|
3,437,999
|
|
|
3,911,286
|
|
|||
Proceeds from sales of other assets
|
21,714
|
|
|
17,601
|
|
|
149,128
|
|
|||
Purchase of subsidiary, net of cash
|
(175,000
|
)
|
|
(8,316,155
|
)
|
|
—
|
|
|||
Purchases of property, equipment and software
|
(2,882,732
|
)
|
|
(2,456,951
|
)
|
|
(2,742,619
|
)
|
|||
Proceeds from disposals of property
|
51,022
|
|
|
91,656
|
|
|
75,060
|
|
|||
Net cash used in investing activities
|
(20,288,406
|
)
|
|
(8,838,598
|
)
|
|
(4,699,081
|
)
|
|||
|
|
|
|
|
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
||||
Repurchases of common stock
|
(244,831
|
)
|
|
(6,219,670
|
)
|
|
(5,483,953
|
)
|
|||
Exercise of stock appreciation rights and options
|
(737
|
)
|
|
(200
|
)
|
|
54,988
|
|
|||
Proceeds from note payable
|
—
|
|
|
6,000,000
|
|
|
—
|
|
|||
Payments on note payable
|
—
|
|
|
(6,000,000
|
)
|
|
—
|
|
|||
Subsidiary return of capital
|
—
|
|
|
—
|
|
|
(35,000
|
)
|
|||
Dividends paid
|
(7,073,210
|
)
|
|
(1,370,390
|
)
|
|
(789,907
|
)
|
|||
Net cash used in financing activities
|
(7,318,778
|
)
|
|
(7,590,260
|
)
|
|
(6,253,872
|
)
|
Consolidated Statements of Cash Flows, continued
|
|
|
|
||||||||
|
2017
|
|
2016
|
|
2015
|
||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(7,714,004
|
)
|
|
6,138,404
|
|
|
5,963,553
|
|
|||
Cash and Cash Equivalents, Beginning of Period
|
27,928,472
|
|
|
21,790,068
|
|
|
15,826,515
|
|
|||
Cash and Cash Equivalents, End of Period
|
$
|
20,214,468
|
|
|
$
|
27,928,472
|
|
|
$
|
21,790,068
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Cash Paid During the Year for:
|
|
|
|
|
|
||||||
Income tax payments, net
|
$
|
11,538,800
|
|
|
$
|
5,068,400
|
|
|
$
|
4,658,000
|
|
Non Cash Investing and Financing Activities
|
|
|
|
|
|
||||||
Non cash net unrealized (gain) loss on investments, net of deferred tax (provision) benefit of $(2,144,901), $(133,892) and $708,564 for December 31, 2017, 2016 and 2015, respectively
|
$
|
(4,131,735
|
)
|
|
$
|
(272,906
|
)
|
|
$
|
1,336,756
|
|
Adjustments to postretirement benefits obligation, net of deferred tax (provision) benefit of $(23,676), $192 and $21,612 for December 31, 2017, 2016 and 2015, respectively
|
$
|
(45,958
|
)
|
|
$
|
374
|
|
|
$
|
41,954
|
|
Changes in Financial Statement Amounts Related to Purchase of Subsidiaries, Net of Cash Received
|
|
|
|
|
|
||||||
Goodwill and other intangibles acquired
|
$
|
(237,000
|
)
|
|
$
|
(11,249,851
|
)
|
|
$
|
—
|
|
Title plant acquired (in prepaid expenses and other assets)
|
—
|
|
|
(690,000
|
)
|
|
—
|
|
|||
Fixed assets acquired
|
—
|
|
|
(533,424
|
)
|
|
—
|
|
|||
Prepaid and other assets acquired
|
—
|
|
|
(15,233
|
)
|
|
—
|
|
|||
Accounts payable and accrued liabilities assumed
|
62,000
|
|
|
1,683,844
|
|
|
—
|
|
|||
Deferred income taxes
|
—
|
|
|
2,488,509
|
|
|
—
|
|
|||
Purchase of subsidiary, net of cash received
|
$
|
(175,000
|
)
|
|
$
|
(8,316,155
|
)
|
|
$
|
—
|
|
December 31, 2017
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
Fixed maturities, available-for-sale, at fair value:
|
|
|
|
|
|
|
|
||||||||
Government obligations
|
$
|
1,042,921
|
|
|
$
|
—
|
|
|
$
|
951
|
|
|
$
|
1,041,970
|
|
General obligations of U.S. states, territories and political subdivisions
|
24,189,032
|
|
|
505,513
|
|
|
50,224
|
|
|
24,644,321
|
|
||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
62,591,978
|
|
|
2,217,665
|
|
|
164,355
|
|
|
64,645,288
|
|
||||
Corporate debt securities
|
12,490,154
|
|
|
528,218
|
|
|
8,868
|
|
|
13,009,504
|
|
||||
Total
|
$
|
100,314,085
|
|
|
$
|
3,251,396
|
|
|
$
|
224,398
|
|
|
$
|
103,341,083
|
|
Equity securities, available-for-sale, at fair value:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common stocks
|
$
|
26,002,619
|
|
|
$
|
21,376,110
|
|
|
$
|
11,903
|
|
|
$
|
47,366,826
|
|
Total
|
$
|
26,002,619
|
|
|
$
|
21,376,110
|
|
|
$
|
11,903
|
|
|
$
|
47,366,826
|
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial paper, money market funds and certificates of deposit
|
$
|
23,779,672
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,779,672
|
|
Total
|
$
|
23,779,672
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,779,672
|
|
December 31, 2016
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair
Value
|
||||||||
Fixed maturities, available-for-sale, at fair value:
|
|
|
|
|
|
|
|
||||||||
General obligations of U.S. states, territories and political subdivisions
|
$
|
29,374,774
|
|
|
$
|
440,628
|
|
|
$
|
298,533
|
|
|
$
|
29,516,869
|
|
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
57,459,818
|
|
|
1,619,444
|
|
|
502,135
|
|
|
58,577,127
|
|
||||
Corporate debt securities
|
13,327,765
|
|
|
512,316
|
|
|
—
|
|
|
13,840,081
|
|
||||
Total
|
$
|
100,162,357
|
|
|
$
|
2,572,388
|
|
|
$
|
800,668
|
|
|
$
|
101,934,077
|
|
Equity securities, available-for sale, at fair value:
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
$
|
24,836,032
|
|
|
$
|
16,392,210
|
|
|
$
|
48,983
|
|
|
$
|
41,179,259
|
|
Total
|
$
|
24,836,032
|
|
|
$
|
16,392,210
|
|
|
$
|
48,983
|
|
|
$
|
41,179,259
|
|
Short-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Money market funds and certificates of deposit
|
$
|
6,558,840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,558,840
|
|
Total
|
$
|
6,558,840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,558,840
|
|
|
Available-for-Sale
|
||||||
|
Amortized
Cost
|
|
Fair
Value
|
||||
Due in one year or less
|
$
|
11,570,232
|
|
|
$
|
11,637,351
|
|
Due after one year through five years
|
38,510,415
|
|
|
39,352,750
|
|
||
Due five years through ten years
|
48,246,123
|
|
|
49,802,410
|
|
||
Due after ten years
|
1,987,315
|
|
|
2,548,572
|
|
||
Total
|
$
|
100,314,085
|
|
|
$
|
103,341,083
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Fixed maturities
|
$
|
3,037,105
|
|
|
$
|
3,506,484
|
|
|
$
|
3,439,296
|
|
Equity securities
|
1,202,912
|
|
|
1,157,550
|
|
|
1,086,365
|
|
|||
Invested cash and other short-term investments
|
201,780
|
|
|
19,982
|
|
|
5,605
|
|
|||
Miscellaneous interest
|
2,650
|
|
|
473
|
|
|
53
|
|
|||
Investment income
|
$
|
4,444,447
|
|
|
$
|
4,684,489
|
|
|
$
|
4,531,319
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross realized gains:
|
|
|
|
|
|
||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
$
|
139
|
|
|
$
|
161
|
|
|
$
|
—
|
|
Corporate debt securities
|
—
|
|
|
119,001
|
|
|
5,417
|
|
|||
Common stocks and nonredeemable preferred stocks
|
1,487,420
|
|
|
953,491
|
|
|
1,572,636
|
|
|||
Auction rate securities
|
—
|
|
|
74,996
|
|
|
—
|
|
|||
Total
|
1,487,559
|
|
|
1,147,649
|
|
|
1,578,053
|
|
|||
Gross realized losses:
|
|
|
|
|
|
||||||
General obligations of U.S. states, territories and political subdivisions
|
—
|
|
|
(535
|
)
|
|
(12,319
|
)
|
|||
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
(100
|
)
|
|
(1,085
|
)
|
|
(397
|
)
|
|||
Common stocks
|
(260,194
|
)
|
|
(173,357
|
)
|
|
(846,500
|
)
|
|||
Other than temporary impairment of securities
|
(25,411
|
)
|
|
(233,941
|
)
|
|
(751,059
|
)
|
|||
Total
|
(285,705
|
)
|
|
(408,918
|
)
|
|
(1,610,275
|
)
|
|||
Net realized gain (loss)
|
$
|
1,201,854
|
|
|
$
|
738,731
|
|
|
$
|
(32,222
|
)
|
Net realized (loss) gain on other investments:
|
|
|
|
|
|
||||||
Impairments of other assets and investments
|
$
|
(182,667
|
)
|
|
$
|
—
|
|
|
$
|
(233,069
|
)
|
Net gain on other assets and investments
|
21,714
|
|
|
29,705
|
|
|
149,128
|
|
|||
Total
|
$
|
(160,953
|
)
|
|
$
|
29,705
|
|
|
$
|
(83,941
|
)
|
Net realized gain (loss) on investments
|
$
|
1,040,901
|
|
|
$
|
768,436
|
|
|
$
|
(116,163
|
)
|
|
Less than 12 Months
|
|
12 Months or Longer
|
|
Total
|
||||||||||||||||||
December 31, 2017
|
Estimated Fair Value
|
|
Unrealized Loss
|
|
Estimated Fair Value
|
|
Unrealized Loss
|
|
Estimated Fair Value
|
|
Unrealized Loss
|
||||||||||||
Government obligations
|
$
|
1,041,970
|
|
|
$
|
(951
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,041,970
|
|
|
$
|
(951
|
)
|
General obligations of U.S. states, territories and political subdivisions
|
4,560,021
|
|
|
(26,823
|
)
|
|
3,535,040
|
|
|
(23,401
|
)
|
|
8,095,061
|
|
|
(50,224
|
)
|
||||||
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
13,550,979
|
|
|
(61,127
|
)
|
|
4,022,310
|
|
|
(103,228
|
)
|
|
17,573,289
|
|
|
(164,355
|
)
|
||||||
Corporate debt securities
|
3,744,195
|
|
|
(8,868
|
)
|
|
—
|
|
|
—
|
|
|
3,744,195
|
|
|
(8,868
|
)
|
||||||
Total fixed maturity securities
|
$
|
22,897,165
|
|
|
$
|
(97,769
|
)
|
|
$
|
7,557,350
|
|
|
$
|
(126,629
|
)
|
|
$
|
30,454,515
|
|
|
$
|
(224,398
|
)
|
Equity securities
|
61,187
|
|
|
(11,903
|
)
|
|
—
|
|
|
—
|
|
|
61,187
|
|
|
(11,903
|
)
|
||||||
Total temporarily impaired securities
|
$
|
22,958,352
|
|
|
$
|
(109,672
|
)
|
|
$
|
7,557,350
|
|
|
$
|
(126,629
|
)
|
|
$
|
30,515,702
|
|
|
$
|
(236,301
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General obligations of U.S. states, territories and political subdivisions
|
$
|
13,884,808
|
|
|
$
|
(298,533
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,884,808
|
|
|
$
|
(298,533
|
)
|
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
16,161,906
|
|
|
(502,135
|
)
|
|
—
|
|
|
—
|
|
|
16,161,906
|
|
|
(502,135
|
)
|
||||||
Total fixed maturity securities
|
$
|
30,046,714
|
|
|
$
|
(800,668
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,046,714
|
|
|
$
|
(800,668
|
)
|
Equity securities
|
380,400
|
|
|
(48,983
|
)
|
|
—
|
|
|
—
|
|
|
380,400
|
|
|
(48,983
|
)
|
||||||
Total temporarily impaired securities
|
$
|
30,427,114
|
|
|
$
|
(849,651
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,427,114
|
|
|
$
|
(849,651
|
)
|
Type of Investment
|
|
Balance Sheet Classification
|
|
Carrying Value
|
|
Estimated Fair Value
|
|
Maximum Potential Loss (a)
|
||||||
Tax credit LPs
|
|
Other investments
|
|
$
|
905,179
|
|
|
$
|
905,179
|
|
|
$
|
1,325,000
|
|
Real estate LLCs or LPs
|
|
Other investments
|
|
5,355,874
|
|
|
5,849,112
|
|
|
7,700,000
|
|
|||
Small business investment LPs
|
|
Other investments
|
|
3,750,677
|
|
|
3,806,600
|
|
|
9,400,000
|
|
|||
Total
|
|
|
|
$
|
10,011,730
|
|
|
$
|
10,560,891
|
|
|
$
|
18,425,000
|
|
(a)
|
|
Maximum potential loss is calculated as the total investment in the LLC or LP including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment.
|
As of December 31, 2017
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Short-term investments
|
$
|
23,779,672
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,779,672
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
47,366,826
|
|
|
—
|
|
|
—
|
|
|
47,366,826
|
|
||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
Obligations of U.S. states, territories and political subdivisions*
|
—
|
|
|
90,331,579
|
|
|
—
|
|
|
90,331,579
|
|
||||
Corporate debt securities*
|
—
|
|
|
13,009,504
|
|
|
—
|
|
|
13,009,504
|
|
||||
Total
|
$
|
71,146,498
|
|
|
$
|
103,341,083
|
|
|
$
|
—
|
|
|
$
|
174,487,581
|
|
As of December 31, 2016
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Short-term investments
|
$
|
6,558,840
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,558,840
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
41,179,259
|
|
|
—
|
|
|
—
|
|
|
41,179,259
|
|
||||
Fixed maturities:
|
|
|
|
|
|
|
|
||||||||
Obligations of U.S. states, territories and political subdivisions*
|
—
|
|
|
88,093,996
|
|
|
—
|
|
|
88,093,996
|
|
||||
Corporate debt securities*
|
—
|
|
|
13,840,081
|
|
|
—
|
|
|
13,840,081
|
|
||||
Total
|
$
|
47,738,099
|
|
|
$
|
101,934,077
|
|
|
$
|
—
|
|
|
$
|
149,672,176
|
|
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets
|
Carrying Value
|
|
Estimated Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Cash and cash equivalents
|
$
|
20,214,468
|
|
|
$
|
20,214,468
|
|
|
$
|
20,214,468
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost-basis investments
|
5,438,745
|
|
|
5,710,184
|
|
|
—
|
|
|
—
|
|
|
5,710,184
|
|
|||||
Accrued interest and dividends
|
1,099,879
|
|
|
1,099,879
|
|
|
1,099,879
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
26,753,092
|
|
|
$
|
27,024,531
|
|
|
$
|
21,314,347
|
|
|
$
|
—
|
|
|
$
|
5,710,184
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Assets
|
Carrying Value
|
|
Estimated Fair
Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Cash and cash equivalents
|
$
|
27,928,472
|
|
|
$
|
27,928,472
|
|
|
$
|
27,928,472
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cost-basis investments
|
4,244,402
|
|
|
4,497,665
|
|
|
—
|
|
|
—
|
|
|
4,497,665
|
|
|||||
Accrued interest and dividends
|
1,035,152
|
|
|
1,035,152
|
|
|
1,035,152
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
33,208,026
|
|
|
$
|
33,461,289
|
|
|
$
|
28,963,624
|
|
|
$
|
—
|
|
|
$
|
4,497,665
|
|
|
2017
|
|
2016
|
||||
Land
|
$
|
1,122,582
|
|
|
$
|
1,122,582
|
|
Office buildings and improvements (25 years)
|
4,406,117
|
|
|
4,399,448
|
|
||
Furniture, fixtures and equipment (3 to 10 years)
|
12,993,387
|
|
|
10,444,355
|
|
||
Automobiles (3 years)
|
891,001
|
|
|
971,235
|
|
||
Total
|
19,413,087
|
|
|
16,937,620
|
|
||
Less accumulated depreciation
|
(9,240,183
|
)
|
|
(8,184,154
|
)
|
||
Property and equipment, net
|
$
|
10,172,904
|
|
|
$
|
8,753,466
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance, beginning of period
|
$
|
35,305,000
|
|
|
$
|
37,788,000
|
|
|
$
|
36,677,000
|
|
Provision (benefit) related to:
|
|
|
|
|
|
||||||
Current year
|
7,431,586
|
|
|
6,673,036
|
|
|
7,295,013
|
|
|||
Prior years
|
(4,120,506
|
)
|
|
(6,430,083
|
)
|
|
(2,816,519
|
)
|
|||
Total provision charged to operations
|
3,311,080
|
|
|
242,953
|
|
|
4,478,494
|
|
|||
Claims paid, net of recoveries, related to:
|
|
|
|
|
|
||||||
Current year
|
(74,885
|
)
|
|
(102,501
|
)
|
|
(97,116
|
)
|
|||
Prior years
|
(3,740,195
|
)
|
|
(2,623,452
|
)
|
|
(3,270,378
|
)
|
|||
Total claims paid, net of recoveries
|
(3,815,080
|
)
|
|
(2,725,953
|
)
|
|
(3,367,494
|
)
|
|||
Balance, end of year
|
$
|
34,801,000
|
|
|
$
|
35,305,000
|
|
|
$
|
37,788,000
|
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||
Known title claims
|
$
|
4,646,422
|
|
|
13.4
|
|
$
|
4,405,343
|
|
|
12.5
|
IBNR
|
30,154,578
|
|
|
86.6
|
|
30,899,657
|
|
|
87.5
|
||
Total loss reserve
|
$
|
34,801,000
|
|
|
100.0
|
|
$
|
35,305,000
|
|
|
100.0
|
For the Years Ended December 31,
|
2017
|
|
2016
|
|
2015
|
||||||
Net income attributable to the Company
|
$
|
25,706,502
|
|
|
$
|
19,523,118
|
|
|
$
|
12,533,905
|
|
Weighted average common shares outstanding – Basic
|
1,886,354
|
|
|
1,907,675
|
|
|
1,984,360
|
|
|||
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled)
|
9,517
|
|
|
7,382
|
|
|
5,439
|
|
|||
Weighted average common shares outstanding – Diluted
|
1,895,871
|
|
|
1,915,057
|
|
|
1,989,799
|
|
|||
Basic earnings per common share
|
$
|
13.63
|
|
|
$
|
10.23
|
|
|
$
|
6.32
|
|
Diluted earnings per common share
|
$
|
13.56
|
|
|
$
|
10.19
|
|
|
$
|
6.30
|
|
|
Number
Of Shares
|
|
Weighted
Average
Exercise
Price
|
|
Average
Remaining
Contractual
Term (Years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding as of January 1, 2015
|
21,000
|
|
|
$
|
51.30
|
|
|
3.64
|
|
$
|
453,510
|
|
SARs granted
|
4,500
|
|
|
73.00
|
|
|
|
|
|
|
||
SARs exercised
|
(2,000
|
)
|
|
47.88
|
|
|
|
|
|
|
||
Options exercised
|
(1,500
|
)
|
|
36.79
|
|
|
|
|
|
|
||
Outstanding as of December 31, 2015
|
22,000
|
|
|
$
|
57.04
|
|
|
3.93
|
|
$
|
945,055
|
|
SARs granted
|
4,500
|
|
|
93.87
|
|
|
|
|
|
|
||
SARs exercised
|
(2,000
|
)
|
|
32.00
|
|
|
|
|
|
|||
Outstanding as of December 31, 2016
|
24,500
|
|
|
$
|
65.85
|
|
|
3.85
|
|
$
|
836,640
|
|
SARs granted
|
4,500
|
|
|
192.71
|
|
|
|
|
|
|
||
SARs exercised
|
(4,000
|
)
|
|
36.38
|
|
|
|
|
|
|
||
Outstanding as of December 31, 2017
|
25,000
|
|
|
$
|
93.40
|
|
|
3.98
|
|
$
|
2,623,720
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable as of December 31, 2017
|
23,875
|
|
|
$
|
88.72
|
|
|
3.87
|
|
$
|
2,617,375
|
|
|
|
|
|
|
|
|
|
|||||
Unvested as of December 31, 2017
|
1,125
|
|
|
$
|
192.71
|
|
|
6.38
|
|
$
|
6,345
|
|
|
|
|
|
|
|
SARs Outstanding at Year-End
|
|
SARs Exercisable at Year-End
|
||||||||||||||||
Range of Exercise Prices
|
|
Number
Outstanding
|
|
Weighted
Average
Remaining
Contractual Life
|
|
Weighted
Average
Exercise
Price
|
|
Number
Exercisable
|
|
Weighted
Average
Exercise
Price
|
||||||||||||||
$
|
40.00
|
|
|
—
|
|
$
|
49.99
|
|
|
1,000
|
|
|
0.38
|
|
$
|
41.50
|
|
|
1,000
|
|
|
$
|
41.50
|
|
50.00
|
|
|
—
|
|
59.99
|
|
|
3,000
|
|
|
1.37
|
|
50.50
|
|
|
3,000
|
|
|
50.50
|
|
||||
60.00
|
|
|
—
|
|
69.99
|
|
|
4,500
|
|
|
3.39
|
|
68.70
|
|
|
4,500
|
|
|
68.70
|
|
||||
70.00
|
|
|
—
|
|
79.99
|
|
|
7,500
|
|
|
3.58
|
|
72.44
|
|
|
7,500
|
|
|
72.44
|
|
||||
90.00
|
|
|
—
|
|
99.99
|
|
|
4,500
|
|
|
5.38
|
|
93.87
|
|
|
4,500
|
|
|
93.87
|
|
||||
190.00
|
|
|
—
|
|
199.99
|
|
|
4,500
|
|
|
6.38
|
|
192.71
|
|
|
3,375
|
|
|
192.71
|
|
||||
$
|
40.00
|
|
|
—
|
|
$
|
199.99
|
|
|
25,000
|
|
|
3.98
|
|
$
|
93.40
|
|
|
23,875
|
|
|
$
|
88.72
|
|
|
2017
|
|
2016
|
|
2015
|
Expected Life in Years
|
7.0
|
|
7.0
|
|
7.0
|
Volatility
|
26.2%
|
|
28.9%
|
|
40.7%
|
Interest Rate
|
2.0%
|
|
1.7%
|
|
2.0%
|
Yield Rate
|
0.8%
|
|
0.7%
|
|
0.4%
|
For the Years Ended December 31,
|
2017
|
|
2016
|
|
2015
|
||||||
Exercise price equal to market price on date of grant:
|
|
|
|
|
|
||||||
Weighted average market price
|
$
|
192.71
|
|
|
$
|
93.87
|
|
|
$
|
73.00
|
|
Weighted average grant-date fair value
|
$
|
55.40
|
|
|
$
|
28.75
|
|
|
$
|
31.16
|
|
For the Years Ended December 31,
|
2017
|
|
2016
|
|
2015
|
||||||
Current:
|
|
|
|
|
|
||||||
Federal
|
$
|
9,163,000
|
|
|
$
|
5,745,000
|
|
|
$
|
4,179,000
|
|
State
|
71,000
|
|
|
81,000
|
|
|
34,000
|
|
|||
Total current
|
9,234,000
|
|
|
5,826,000
|
|
|
4,213,000
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Federal
|
(4,649,054
|
)
|
|
2,755,777
|
|
|
976,624
|
|
|||
State
|
(14,946
|
)
|
|
34,223
|
|
|
38,376
|
|
|||
Total deferred
|
(4,664,000
|
)
|
|
2,790,000
|
|
|
1,015,000
|
|
|||
Total
|
$
|
4,570,000
|
|
|
$
|
8,616,000
|
|
|
$
|
5,228,000
|
|
For the Years Ended December 31,
|
2017
|
|
2016
|
||||
Deferred income tax assets:
|
|
|
|
||||
Accrued benefits and retirement services
|
$
|
2,448,598
|
|
|
$
|
3,625,943
|
|
Other-than-temporary impairment of assets
|
265,178
|
|
|
429,167
|
|
||
Allowance for doubtful accounts
|
102,015
|
|
|
122,477
|
|
||
Net operating loss carryforward
|
33,000
|
|
|
15,000
|
|
||
Postretirement benefit obligation
|
18,318
|
|
|
56,259
|
|
||
Other
|
878,195
|
|
|
418,335
|
|
||
Total
|
3,745,304
|
|
|
4,667,181
|
|
||
Deferred income tax liabilities:
|
|
|
|
||||
Net unrealized gain on investments
|
5,193,029
|
|
|
6,207,324
|
|
||
Recorded reserve for claims, net of statutory premium reserves
|
4,126,388
|
|
|
4,985,984
|
|
||
Intangible assets
|
1,337,909
|
|
|
2,525,511
|
|
||
Excess of tax over book depreciation
|
1,042,205
|
|
|
1,303,710
|
|
||
Other
|
671,532
|
|
|
762,908
|
|
||
Total
|
12,371,063
|
|
|
15,785,437
|
|
||
Net deferred income tax liabilities
|
$
|
(8,625,759
|
)
|
|
$
|
(11,118,256
|
)
|
For the Years Ended December 31,
|
2017
|
|
2016
|
|
2015
|
||||||
Anticipated income tax expense
|
$
|
10,594,700
|
|
|
$
|
9,733,482
|
|
|
$
|
6,115,306
|
|
Increase (decrease) related to:
|
|
|
|
|
|
||||||
State income taxes, net of federal income tax benefit
|
46,150
|
|
|
52,974
|
|
|
22,304
|
|
|||
Tax-exempt interest income (net of amortization)
|
(1,298,251
|
)
|
|
(1,074,504
|
)
|
|
(981,712
|
)
|
|||
Tax Cuts and Jobs Act
|
(5,341,521
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
568,922
|
|
|
(95,952
|
)
|
|
72,102
|
|
|||
Provision for income taxes
|
$
|
4,570,000
|
|
|
$
|
8,616,000
|
|
|
$
|
5,228,000
|
|
Year Ended:
|
|
||
2018
|
$
|
1,190,734
|
|
2019
|
1,018,685
|
|
|
2020
|
861,763
|
|
|
2021
|
766,584
|
|
|
2022
|
588,720
|
|
|
Thereafter
|
340,462
|
|
|
Total
|
$
|
4,766,948
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net periodic benefit cost
|
|
|
|
|
|
||||||
Service cost – benefits earned during the year
|
$
|
—
|
|
|
$
|
10,180
|
|
|
$
|
16,748
|
|
Interest cost on the projected benefit obligation
|
36,869
|
|
|
35,123
|
|
|
30,772
|
|
|||
Amortization of unrecognized prior service cost
|
—
|
|
|
—
|
|
|
4,390
|
|
|||
Amortization of unrecognized loss
|
8,612
|
|
|
8,941
|
|
|
3,514
|
|
|||
Net periodic benefits cost at end of year
|
$
|
45,481
|
|
|
$
|
54,244
|
|
|
$
|
55,424
|
|
|
2017
|
|
2016
|
||||
Funded status
|
|
|
|
||||
Actuarial present value of future benefits:
|
|
|
|
||||
Fully eligible active employee
|
$
|
(895,727
|
)
|
|
$
|
(928,492
|
)
|
Non-eligible active employees
|
—
|
|
|
—
|
|
||
Plan assets
|
—
|
|
|
—
|
|
||
Funded status of accumulated postretirement benefit obligation, recognized in other liabilities
|
$
|
(895,727
|
)
|
|
$
|
(928,492
|
)
|
|
2017
|
|
2016
|
||||
Accrued postretirement benefit obligation at beginning of year
|
$
|
(928,492
|
)
|
|
$
|
(882,623
|
)
|
Service cost – benefits earned during the year
|
—
|
|
|
(10,180
|
)
|
||
Interest cost on projected benefit obligation
|
(36,869
|
)
|
|
(35,123
|
)
|
||
Actuarial gain (loss)
|
69,634
|
|
|
(566
|
)
|
||
Accrued postretirement benefit obligation at end of year
|
$
|
(895,727
|
)
|
|
$
|
(928,492
|
)
|
|
2017
|
|
2016
|
||||
Balance at beginning of year
|
$
|
165,437
|
|
|
$
|
173,812
|
|
Components of accumulated other comprehensive income:
|
|
|
|
||||
Unrecognized prior service cost
|
—
|
|
|
—
|
|
||
Amortization of loss, net
|
(8,612
|
)
|
|
(8,941
|
)
|
||
Actuarial (gain) loss
|
(69,634
|
)
|
|
566
|
|
||
Balance at end of year
|
$
|
87,191
|
|
|
$
|
165,437
|
|
|
Projected
2018
|
||
Amortization of unrecognized prior service cost
|
$
|
—
|
|
Amortization of unrecognized loss
|
—
|
|
|
Net periodic benefit cost at end of year
|
$
|
—
|
|
|
One
Percentage
Point
Increase
|
|
One
Percentage
Point
Decrease
|
||||
Net periodic postretirement benefit cost
|
|
|
|
||||
Effect on the service cost component
|
$
|
—
|
|
|
$
|
—
|
|
Effect on interest cost
|
6,761
|
|
|
(5,305
|
)
|
||
Total effect on the net periodic postretirement benefit cost
|
$
|
6,761
|
|
|
$
|
(5,305
|
)
|
Accumulated postretirement benefit obligation (including active employees
who are not fully eligible)
|
|
|
|
||||
Effect on those currently receiving benefits (retirees and spouses)
|
$
|
—
|
|
|
$
|
—
|
|
Effect on active fully eligible
|
187,814
|
|
|
(147,367
|
)
|
||
Effect on actives not yet eligible
|
—
|
|
|
—
|
|
||
Total effect on the accumulated postretirement benefit obligation
|
$
|
187,814
|
|
|
$
|
(147,367
|
)
|
2017
|
Title
Insurance
|
|
All
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||
Insurance and other services revenues
|
$
|
154,333,311
|
|
|
$
|
7,530,496
|
|
|
$
|
(5,699,859
|
)
|
|
$
|
156,163,948
|
|
Investment income
|
4,992,127
|
|
|
546,105
|
|
|
(1,093,785
|
)
|
|
4,444,447
|
|
||||
Net realized gain on investments
|
931,635
|
|
|
109,266
|
|
|
—
|
|
|
1,040,901
|
|
||||
Total revenues
|
$
|
160,257,073
|
|
|
$
|
8,185,867
|
|
|
$
|
(6,793,644
|
)
|
|
$
|
161,649,296
|
|
Operating expenses
|
129,095,939
|
|
|
7,912,962
|
|
|
(5,630,175
|
)
|
|
131,378,726
|
|
||||
Income before income taxes
|
$
|
31,161,134
|
|
|
$
|
272,905
|
|
|
$
|
(1,163,469
|
)
|
|
$
|
30,270,570
|
|
Total assets
|
$
|
193,827,920
|
|
|
$
|
55,084,939
|
|
|
$
|
—
|
|
|
$
|
248,912,859
|
|
2016
|
Title
Insurance
|
|
All
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||
Insurance and other services revenues
|
$
|
128,408,746
|
|
|
$
|
6,808,392
|
|
|
$
|
(2,177,649
|
)
|
|
$
|
133,039,489
|
|
Investment income
|
4,329,605
|
|
|
564,891
|
|
|
(210,007
|
)
|
|
4,684,489
|
|
||||
Net realized gain on investments
|
644,850
|
|
|
123,586
|
|
|
—
|
|
|
768,436
|
|
||||
Total revenues
|
$
|
133,383,201
|
|
|
$
|
7,496,869
|
|
|
$
|
(2,387,656
|
)
|
|
$
|
138,492,414
|
|
Operating expenses
|
105,885,770
|
|
|
6,583,157
|
|
|
(2,107,965
|
)
|
|
110,360,962
|
|
||||
Income before income taxes
|
$
|
27,497,431
|
|
|
$
|
913,712
|
|
|
$
|
(279,691
|
)
|
|
$
|
28,131,452
|
|
Total assets
|
$
|
183,763,655
|
|
|
$
|
45,174,467
|
|
|
$
|
—
|
|
|
$
|
228,938,122
|
|
2015
|
Title
Insurance
|
|
All
Other
|
|
Intersegment
Eliminations
|
|
Total
|
||||||||
Insurance and other services revenues
|
$
|
118,144,981
|
|
|
$
|
6,479,484
|
|
|
$
|
(1,839,549
|
)
|
|
$
|
122,784,916
|
|
Investment income
|
4,073,857
|
|
|
574,132
|
|
|
(116,670
|
)
|
|
4,531,319
|
|
||||
Net realized loss on investments
|
(13,603
|
)
|
|
(102,560
|
)
|
|
—
|
|
|
(116,163
|
)
|
||||
Total revenues
|
$
|
122,205,235
|
|
|
$
|
6,951,056
|
|
|
$
|
(1,956,219
|
)
|
|
$
|
127,200,072
|
|
Operating expenses
|
104,594,829
|
|
|
6,598,055
|
|
|
(1,769,865
|
)
|
|
109,423,019
|
|
||||
Income before income taxes
|
$
|
17,610,406
|
|
|
$
|
353,001
|
|
|
$
|
(186,354
|
)
|
|
$
|
17,777,053
|
|
Total assets
|
$
|
163,582,898
|
|
|
$
|
47,939,131
|
|
|
$
|
—
|
|
|
$
|
211,522,029
|
|
Financial Statement Classification,
|
2017
|
|
2016
|
||||
Consolidated Balance Sheets
|
|
||||||
Other investments
|
$
|
6,594,000
|
|
|
$
|
6,437,000
|
|
Premiums and fees receivable
|
$
|
720,000
|
|
|
$
|
56,000
|
|
Financial Statement Classification,
|
|
|
|
||||||||
Consolidated Statements of Income
|
2017
|
|
2016
|
|
2015
|
||||||
Net premiums written
|
$
|
14,355,000
|
|
|
$
|
15,016,000
|
|
|
$
|
14,015,000
|
|
Other income
|
$
|
2,240,000
|
|
|
$
|
2,317,000
|
|
|
$
|
2,618,000
|
|
Commissions to agents
|
$
|
9,864,000
|
|
|
$
|
10,394,000
|
|
|
$
|
9,700,000
|
|
Year Ended:
|
2017
|
2016
|
||||
Referral relationships
|
$
|
6,416,215
|
|
$
|
6,416,215
|
|
Non-complete agreements
|
1,405,685
|
|
1,405,685
|
|
||
Tradename
|
560,000
|
|
560,000
|
|
||
Total
|
8,381,900
|
|
8,381,900
|
|
||
Accumulated amortization
|
(1,374,461
|
)
|
(475,110
|
)
|
||
Identifiable intangible assets, net
|
$
|
7,007,439
|
|
$
|
7,906,790
|
|
Year Ended:
|
|
||
2018
|
$
|
642,253
|
|
2019
|
568,920
|
|
|
2020
|
568,920
|
|
|
2021
|
561,587
|
|
|
2022
|
524,920
|
|
|
Thereafter
|
4,140,839
|
|
|
Total
|
$
|
7,007,439
|
|
2017
|
Unrealized Gains and Losses
On Available-for-Sale
Securities
|
|
Postretirement
Benefits Plans
|
|
Total
|
||||||
Beginning balance at January 1
|
$
|
11,870,647
|
|
|
$
|
(109,200
|
)
|
|
$
|
11,761,447
|
|
Other comprehensive income before reclassifications
|
4,922,796
|
|
|
45,958
|
|
|
4,968,754
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
(791,061
|
)
|
|
5,686
|
|
|
(785,375
|
)
|
|||
Net current-period other comprehensive income
|
4,131,735
|
|
|
51,644
|
|
|
4,183,379
|
|
|||
Ending balance
|
$
|
16,002,382
|
|
|
$
|
(57,556
|
)
|
|
$
|
15,944,826
|
|
2016
|
Unrealized Gains and Losses
On Available-for-Sale
Securities
|
|
Postretirement
Benefits Plans
|
|
Total
|
||||||
Beginning balance at January 1
|
$
|
11,597,741
|
|
|
$
|
(114,726
|
)
|
|
$
|
11,483,015
|
|
Other comprehensive income (loss) before reclassifications
|
758,021
|
|
|
(374
|
)
|
|
757,647
|
|
|||
Amounts reclassified from accumulated other comprehensive income
|
(485,115
|
)
|
|
5,900
|
|
|
(479,215
|
)
|
|||
Net current-period other comprehensive income
|
272,906
|
|
|
5,526
|
|
|
278,432
|
|
|||
Ending balance
|
$
|
11,870,647
|
|
|
$
|
(109,200
|
)
|
|
$
|
11,761,447
|
|
2015
|
Unrealized Gains and Losses
On Available-for-Sale
Securities
|
|
Postretirement
Benefits Plans
|
|
Total
|
||||||
Beginning balance at January 1
|
$
|
12,934,497
|
|
|
$
|
(77,988
|
)
|
|
$
|
12,856,509
|
|
Other comprehensive loss before reclassifications
|
(1,355,316
|
)
|
|
(41,954
|
)
|
|
(1,397,270
|
)
|
|||
Amounts reclassified from accumulated other comprehensive income
|
18,560
|
|
|
5,216
|
|
|
23,776
|
|
|||
Net current-period other comprehensive loss
|
(1,336,756
|
)
|
|
(36,738
|
)
|
|
(1,373,494
|
)
|
|||
Ending balance
|
$
|
11,597,741
|
|
|
$
|
(114,726
|
)
|
|
$
|
11,483,015
|
|
2017
|
|
|
|
||
Details about Accumulated Other
Comprehensive Income Components
|
Amount Reclassified from
Accumulated Other
Comprehensive Income
|
|
Affected Line Item in the Consolidated
Statements of Income
|
||
Unrealized gains and losses on available-for-sale securities:
|
|
|
|
||
Net realized gain on investment
|
$
|
1,227,265
|
|
|
|
Other-than-temporary impairments
|
(25,411
|
)
|
|
|
|
Total
|
$
|
1,201,854
|
|
|
Net realized gain (loss) on investments
|
Tax
|
(410,793
|
)
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
791,061
|
|
|
|
Amortization related to postretirement benefit plans:
|
|
|
|
|
|
Prior year service cost
|
$
|
—
|
|
|
|
Unrecognized loss
|
(8,612
|
)
|
|
|
|
Total
|
$
|
(8,612
|
)
|
|
(a)
|
Tax
|
2,926
|
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
(5,686
|
)
|
|
|
Reclassifications for the period
|
$
|
785,375
|
|
|
|
2016
|
|
|
|
||
Details about Accumulated Other
Comprehensive Income Components |
Amount Reclassified from
Accumulated Other Comprehensive Income |
|
Affected Line Item in the Consolidated
Statements of Income |
||
Unrealized gains and losses on available-for-sale securities:
|
|
|
|
||
Net realized gain on investment
|
$
|
972,672
|
|
|
|
Other-than-temporary impairments
|
(233,941
|
)
|
|
|
|
Total
|
$
|
738,731
|
|
|
Net realized gain (loss) on investments
|
Tax
|
(253,616
|
)
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
485,115
|
|
|
|
Amortization related to postretirement benefit plans:
|
|
|
|
|
|
Prior year service cost
|
$
|
—
|
|
|
|
Unrecognized loss
|
(8,941
|
)
|
|
|
|
Total
|
$
|
(8,941
|
)
|
|
(a)
|
Tax
|
3,041
|
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
(5,900
|
)
|
|
|
Reclassifications for the period
|
$
|
479,215
|
|
|
|
2015
|
|
|
|
||
Details about Accumulated Other
Comprehensive Income Components |
Amount Reclassified from
Accumulated Other Comprehensive Income |
|
Affected Line Item in the Consolidated
Statements of Income |
||
Unrealized gains and losses on available-for-sale securities:
|
|
|
|
||
Net realized gain on investment
|
$
|
718,837
|
|
|
|
Other-than-temporary impairments
|
(751,059
|
)
|
|
|
|
Total
|
$
|
(32,222
|
)
|
|
Net realized gain (loss) on investments
|
Tax
|
13,662
|
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
(18,560
|
)
|
|
|
Amortization related to postretirement benefit plans:
|
|
|
|
|
|
Prior year service cost
|
$
|
(4,390
|
)
|
|
|
Unrecognized loss
|
(3,514
|
)
|
|
|
|
Total
|
$
|
(7,904
|
)
|
|
(a)
|
Tax
|
2,688
|
|
|
Provision for Income Taxes
|
|
Net of Tax
|
$
|
(5,216
|
)
|
|
|
Reclassifications for the period
|
$
|
(23,776
|
)
|
|
|
(a)
|
These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10.
|
Plan Category
|
Number of Securities
to be Issued Upon
Exercise of
Outstanding Options,
Warrants and Rights
|
|
Weighted Average
Exercise
Price of
Outstanding Options,
Warrants and Rights
|
|
Number of
Securities
Remaining
Available for Future
Issuance Under
Equity
Compensation Plans
|
||||
Equity compensation plans approved by shareholders
|
25,000
|
|
|
$
|
93.40
|
|
|
223,000
|
|
Equity compensation plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
25,000
|
|
|
$
|
93.40
|
|
|
223,000
|
|
Schedule Number
|
|
Description
|
I
|
|
Summary of Investments – Other Than Investments in Related Parties
|
II
|
|
Condensed Financial Information of Registrant
|
III
|
|
Supplementary Insurance Information
|
IV
|
|
Reinsurance
|
V
|
|
Valuation and Qualifying Accounts
|
|
INVESTORS TITLE COMPANY
|
|
|
(Registrant)
|
|
|
|
|
|
By:
|
/s/ J. Allen Fine
|
|
|
J. Allen Fine, Chairman and Chief Executive
|
|
|
Officer
(Principal Executive Officer)
|
|
|
|
March 12, 2018
|
|
|
/s/ J. Allen Fine
|
|
/s/ James A. Fine, Jr.
|
J. Allen Fine, Chairman of the Board and
|
|
James A. Fine, Jr., President, Treasurer, Chief
|
Chief Executive Officer
|
|
Financial Officer, Chief Accounting Officer and
|
(Principal Executive Officer)
|
|
Director
(Principal Financial Officer and
|
|
|
Principal Accounting Officer)
|
|
|
|
/s/ W. Morris Fine
|
|
/s/ H. Joe King, Jr.
|
W. Morris Fine, Executive Vice President,
|
|
H. Joe King, Jr., Director
|
Secretary and Director
|
|
|
|
|
|
/s/ David L. Francis
|
|
/s/ James R. Morton
|
David L. Francis, Director
|
|
James R. Morton, Director
|
|
|
|
/s/ Richard M. Hutson, II
|
|
/s/ James H. Speed, Jr.
|
Richard M. Hutson, II, Director
|
|
James H. Speed, Jr., Director
|
|
|
|
/s/ R. Horace Johnson
|
|
|
R. Horace Johnson, Director
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Type of Investment
|
Cost (1)
|
|
Market Value
|
|
Amount at which shown in the Balance Sheet (2)
|
||||||
|
|
|
|
|
|
||||||
Fixed maturities:
|
|
|
|
|
|
||||||
Bonds:
|
|
|
|
|
|
||||||
Government obligation
|
$
|
1,042,921
|
|
|
$
|
1,041,970
|
|
|
$
|
1,041,970
|
|
General obligations of U.S. states, territories and political subdivisions
|
23,979,386
|
|
|
24,435,873
|
|
|
24,435,873
|
|
|||
Special revenue issuer obligations of U.S. states, territories and political subdivisions
|
45,848,032
|
|
|
47,470,175
|
|
|
47,470,175
|
|
|||
Public utilities
|
16,953,592
|
|
|
17,383,561
|
|
|
17,383,561
|
|
|||
Corporate debt securities
|
12,490,154
|
|
|
13,009,504
|
|
|
13,009,504
|
|
|||
Total fixed maturities
|
100,314,085
|
|
|
103,341,083
|
|
|
103,341,083
|
|
|||
|
|
|
|
|
|
||||||
Equity securities:
|
|
|
|
|
|
||||||
Common stocks:
|
|
|
|
|
|
||||||
Public utilities
|
312,656
|
|
|
459,265
|
|
|
459,265
|
|
|||
Banks, trusts and insurance companies
|
5,213,975
|
|
|
9,112,321
|
|
|
9,112,321
|
|
|||
Industrial, miscellaneous and all other
|
17,596,334
|
|
|
30,385,656
|
|
|
30,385,656
|
|
|||
Technology
|
2,879,654
|
|
|
7,409,584
|
|
|
7,409,584
|
|
|||
Total equity securities
|
26,002,619
|
|
|
47,366,826
|
|
|
47,366,826
|
|
|||
|
|
|
|
|
|
||||||
Other investments:
|
|
|
|
|
|
||||||
Short-term investments
|
23,779,672
|
|
|
23,779,672
|
|
|
23,779,672
|
|
|||
Other investments (3)
|
11,024,172
|
|
|
11,024,172
|
|
|
11,024,172
|
|
|||
Total other investments
|
34,803,844
|
|
|
34,803,844
|
|
|
34,803,844
|
|
|||
|
|
|
|
|
|
||||||
Total investments (3)
|
$
|
161,120,548
|
|
|
$
|
185,511,753
|
|
|
$
|
185,511,753
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
||||
Assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
5,872,001
|
|
|
$
|
10,178,219
|
|
Investments in fixed maturities, available-for-sale
|
22,713,771
|
|
|
16,505,866
|
|
||
Investments in equity securities, available-for-sale
|
3,691,564
|
|
|
3,193,268
|
|
||
Short-term investments
|
5,808,966
|
|
|
3,162,283
|
|
||
Investments in affiliated companies
|
128,580,223
|
|
|
113,234,094
|
|
||
Other investments
|
5,167,102
|
|
|
4,318,296
|
|
||
Premium and fees receivable
|
94,521
|
|
|
99,878
|
|
||
Other receivables
|
1,629,758
|
|
|
1,986,634
|
|
||
Income taxes recoverable
|
3,878,824
|
|
|
2,562,589
|
|
||
Accrued interest and dividends
|
198,297
|
|
|
86,481
|
|
||
Property, net
|
2,253,866
|
|
|
2,340,605
|
|
||
Total Assets
|
$
|
179,888,893
|
|
|
$
|
157,668,213
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
1,916,253
|
|
|
$
|
2,370,963
|
|
Deferred income taxes, net
|
137,153
|
|
|
252,181
|
|
||
Total liabilities
|
2,053,406
|
|
|
2,623,144
|
|
||
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
|
|
||
Preferred stock (1,000,000 authorized shares; no shares issued)
|
—
|
|
|
—
|
|
||
Common stock – no par value (10,000,000 authorized shares; 1,885,993 and 1,884,283 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively, excluding in each period 291,676 shares of common stock held by the Company)
|
1
|
|
|
1
|
|
||
Retained earnings
|
161,890,660
|
|
|
143,283,621
|
|
||
Accumulated other comprehensive income
|
15,944,826
|
|
|
11,761,447
|
|
||
Total stockholders’ equity
|
177,835,487
|
|
|
155,045,069
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
179,888,893
|
|
|
$
|
157,668,213
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Revenues:
|
|
|
|
|
|
|
||||||
Investment income – interest and dividends
|
|
$
|
501,653
|
|
|
$
|
525,453
|
|
|
$
|
535,963
|
|
Net realized gain (loss) on investments
|
|
35,834
|
|
|
77,895
|
|
|
(152,026
|
)
|
|||
Rental income
|
|
812,951
|
|
|
772,123
|
|
|
765,134
|
|
|||
Miscellaneous income
|
|
220,497
|
|
|
77,074
|
|
|
385,058
|
|
|||
Total
|
|
1,570,935
|
|
|
1,452,545
|
|
|
1,534,129
|
|
|||
|
|
|
|
|
|
|
||||||
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|||
Salaries, employee benefits and payroll taxes
|
|
1,004,177
|
|
|
664,436
|
|
|
651,957
|
|
|||
Office occupancy and operations
|
|
213,547
|
|
|
236,954
|
|
|
239,176
|
|
|||
Business development
|
|
98,562
|
|
|
99,229
|
|
|
76,684
|
|
|||
Taxes – other than payroll and income
|
|
396,084
|
|
|
183,566
|
|
|
213,466
|
|
|||
Professional and contract labor fees
|
|
134,659
|
|
|
377,738
|
|
|
378,265
|
|
|||
Other expenses
|
|
269,300
|
|
|
246,375
|
|
|
198,788
|
|
|||
Total
|
|
2,116,329
|
|
|
1,808,298
|
|
|
1,758,336
|
|
|||
|
|
|
|
|
|
|
||||||
Equity in Net Income of Affiliated Companies
|
|
25,633,964
|
|
|
19,665,205
|
|
|
12,640,260
|
|
|||
|
|
|
|
|
|
|
||||||
Income before Income Taxes
|
|
25,088,570
|
|
|
19,309,452
|
|
|
12,416,053
|
|
|||
|
|
|
|
|
|
|
||||||
Income Tax Benefit
|
|
(612,000
|
)
|
|
(206,000
|
)
|
|
(133,000
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net Income
|
|
25,700,570
|
|
|
19,515,452
|
|
|
12,549,053
|
|
|||
|
|
|
|
|
|
|
||||||
Net Loss (Income) Attributable to Noncontrolling Interests
|
|
5,932
|
|
|
7,666
|
|
|
(15,148
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net Income Attributable to the Company
|
|
$
|
25,706,502
|
|
|
$
|
19,523,118
|
|
|
$
|
12,533,905
|
|
|
|
|
|
|
|
|
||||||
Basic Earnings per Common Share
|
|
$
|
13.63
|
|
|
$
|
10.23
|
|
|
$
|
6.32
|
|
|
|
|
|
|
|
|
||||||
Weighted Average Shares Outstanding – Basic
|
|
1,886,354
|
|
|
1,907,675
|
|
|
1,984,360
|
|
|||
|
|
|
|
|
|
|
||||||
Diluted Earnings per Common Share
|
|
$
|
13.56
|
|
|
$
|
10.19
|
|
|
$
|
6.30
|
|
|
|
|
|
|
|
|
||||||
Weighted Average Shares Outstanding – Diluted
|
|
1,895,871
|
|
|
1,915,057
|
|
|
1,989,799
|
|
|||
|
|
|
|
|
|
|
||||||
Cash Dividends Paid per Common Share
|
|
$
|
3.75
|
|
|
$
|
0.72
|
|
|
$
|
0.40
|
|
|
2017
|
|
2016
|
|
2015
|
||||||
Operating Activities
|
|
|
|
|
|
||||||
Net income
|
$
|
25,700,570
|
|
|
$
|
19,515,452
|
|
|
$
|
12,549,053
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
|
|
|
|||||
Equity in net earnings of subsidiaries
|
(25,633,964
|
)
|
|
(19,665,205
|
)
|
|
(12,640,260
|
)
|
|||
Depreciation
|
97,407
|
|
|
93,086
|
|
|
112,690
|
|
|||
Amortization, net
|
157,674
|
|
|
163,989
|
|
|
192,654
|
|
|||
Share-based compensation expense related to stock appreciation rights and options
|
219,315
|
|
|
132,098
|
|
|
137,759
|
|
|||
Net loss on disposals of property
|
2,955
|
|
|
—
|
|
|
1,683
|
|
|||
Net realized (gain) loss on investments
|
(35,834
|
)
|
|
(77,895
|
)
|
|
152,026
|
|
|||
Net loss (earnings) from other investments
|
4,994
|
|
|
(13,135
|
)
|
|
(237,686
|
)
|
|||
(Benefit) provision for deferred income taxes
|
(211,000
|
)
|
|
(18,000
|
)
|
|
13,000
|
|
|||
Decrease (increase) in receivables
|
362,233
|
|
|
1,037,423
|
|
|
(847,177
|
)
|
|||
(Increase) decrease in income taxes recoverable
|
(1,316,235
|
)
|
|
(796,982
|
)
|
|
169,803
|
|
|||
(Increase) decrease in other assets
|
(111,816
|
)
|
|
33,888
|
|
|
7,852
|
|
|||
(Decrease) increase in accounts payable and accrued liabilities
|
(454,710
|
)
|
|
(896,311
|
)
|
|
1,192,927
|
|
|||
Net cash (used in) provided by operating activities
|
(1,218,411
|
)
|
|
(491,592
|
)
|
|
804,324
|
|
|||
|
|
|
|
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|||
Purchase of subsidiary
|
—
|
|
|
(10,918,003
|
)
|
|
—
|
|
|||
Dividends received from subsidiaries
|
14,816,379
|
|
|
17,330,948
|
|
|
7,630,835
|
|
|||
Purchases of available-for-sale securities
|
(13,178,177
|
)
|
|
(1,783,223
|
)
|
|
(260,044
|
)
|
|||
Purchases of short-term securities
|
(5,835,325
|
)
|
|
(3,162,283
|
)
|
|
(2,721,578
|
)
|
|||
Purchases of and net earnings from other investments
|
(1,049,680
|
)
|
|
(1,552,769
|
)
|
|
(2,007,798
|
)
|
|||
Proceeds from sales and maturities of available-for-sale securities
|
6,616,875
|
|
|
6,815,907
|
|
|
2,475,557
|
|
|||
Proceeds from sales and maturities of short-term securities
|
3,188,641
|
|
|
3,005,647
|
|
|
—
|
|
|||
Proceeds from sales and distributions of other investments
|
195,881
|
|
|
321,758
|
|
|
734,170
|
|
|||
Purchases of property
|
(13,623
|
)
|
|
(144,915
|
)
|
|
(32,071
|
)
|
|||
Net cash provided by investing activities
|
4,740,971
|
|
|
9,913,067
|
|
|
5,819,071
|
|
|||
|
|
|
|
|
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|||
Repurchases of common stock
|
(244,831
|
)
|
|
(6,219,670
|
)
|
|
(5,483,953
|
)
|
|||
Exercise of stock appreciation rights and options
|
(737
|
)
|
|
(200
|
)
|
|
54,988
|
|
|||
Proceeds from note payable
|
—
|
|
|
6,000,000
|
|
|
—
|
|
|||
Payments on note payable
|
—
|
|
|
(6,000,000
|
)
|
|
—
|
|
|||
Capital contribution to subsidiary
|
(510,000
|
)
|
|
—
|
|
|
—
|
|
|||
Dividends paid
|
(7,073,210
|
)
|
|
(1,370,390
|
)
|
|
(789,907
|
)
|
|||
Net cash used in financing activities
|
(7,828,778
|
)
|
|
(7,590,260
|
)
|
|
(6,218,872
|
)
|
|||
|
|
|
|
|
|
||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
(4,306,218
|
)
|
|
1,831,215
|
|
|
404,523
|
|
|||
Cash and Cash Equivalents, Beginning of Period
|
10,178,219
|
|
|
8,347,004
|
|
|
7,942,481
|
|
|||
Cash and Cash Equivalents, End of Period
|
$
|
5,872,001
|
|
|
$
|
10,178,219
|
|
|
$
|
8,347,004
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Income tax payments, net
|
$
|
11,447,000
|
|
|
$
|
4,964,000
|
|
|
$
|
4,598,000
|
|
1.
|
The accompanying Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto of Investors Title Company and Subsidiaries.
|
2.
|
Cash dividends paid to Investors Title Company by its wholly owned subsidiaries were as follows:
|
Subsidiaries
|
2017
|
|
2016
|
|
2015
|
||||||
Investors Title Insurance Company, net*
|
$
|
13,236,379
|
|
|
$
|
15,838,248
|
|
|
$
|
7,134,823
|
|
Investors Title Exchange Corporation
|
300,000
|
|
|
100,000
|
|
|
245,000
|
|
|||
Investors Title Accommodation Corporation
|
80,000
|
|
|
45,000
|
|
|
12,000
|
|
|||
Investors Capital Management Company
|
—
|
|
|
—
|
|
|
9,012
|
|
|||
Investors Trust Company
|
200,000
|
|
|
750,000
|
|
|
—
|
|
|||
Investors Title Commercial Agency, LLC
|
150,000
|
|
|
125,000
|
|
|
230,000
|
|
|||
National Investors Holdings, LLC
|
850,000
|
|
|
472,700
|
|
|
—
|
|
|||
Total
|
$
|
14,816,379
|
|
|
$
|
17,330,948
|
|
|
$
|
7,630,835
|
|
Segment
|
Deferred Policy Acquisition Cost
|
|
Future Policy Benefits, Losses, Claims and Loss Expenses
|
|
Unearned Premiums
|
|
Other Policy Claims and Benefits Payable
|
|
Premium Revenue
|
|
Net Investment Income
|
|
Benefits, Claims. Losses and Settlement Expenses
|
|
Amortization of Deferred Policy Acquisition Costs
|
|
Other Operating Expenses
|
|
Premiums Written
|
||||||||||||||||||
Year Ended December 31, 2017
|
|||||||||||||||||||||||||||||||||||||
Title Insurance
|
$
|
—
|
|
|
$
|
34,801,000
|
|
|
$
|
—
|
|
|
$
|
537,379
|
|
|
$
|
138,588,877
|
|
|
$
|
3,898,342
|
|
|
$
|
3,311,080
|
|
|
$
|
—
|
|
|
$
|
120,247,790
|
|
|
N/A
|
All Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
546,105
|
|
|
—
|
|
|
—
|
|
|
7,819,856
|
|
|
N/A
|
|||||||||
|
$
|
—
|
|
|
$
|
34,801,000
|
|
|
$
|
—
|
|
|
$
|
537,379
|
|
|
$
|
138,588,877
|
|
|
$
|
4,444,447
|
|
|
$
|
3,311,080
|
|
|
$
|
—
|
|
|
$
|
128,067,646
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year Ended December 31, 2016
|
|||||||||||||||||||||||||||||||||||||
Title Insurance
|
$
|
—
|
|
|
$
|
35,305,000
|
|
|
$
|
—
|
|
|
$
|
475,700
|
|
|
$
|
120,569,151
|
|
|
$
|
4,119,598
|
|
|
$
|
242,953
|
|
|
$
|
—
|
|
|
$
|
103,585,220
|
|
|
N/A
|
All Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
564,891
|
|
|
—
|
|
|
—
|
|
|
6,532,789
|
|
|
N/A
|
|||||||||
|
$
|
—
|
|
|
$
|
35,305,000
|
|
|
$
|
—
|
|
|
$
|
475,700
|
|
|
$
|
120,569,151
|
|
|
$
|
4,684,489
|
|
|
$
|
242,953
|
|
|
$
|
—
|
|
|
$
|
110,118,009
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Year Ended December 31, 2015
|
|||||||||||||||||||||||||||||||||||||
Title Insurance
|
$
|
—
|
|
|
$
|
37,788,000
|
|
|
$
|
—
|
|
|
$
|
341,191
|
|
|
$
|
111,909,473
|
|
|
$
|
3,957,187
|
|
|
$
|
4,478,494
|
|
|
$
|
—
|
|
|
$
|
98,417,207
|
|
|
N/A
|
All Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
574,132
|
|
|
—
|
|
|
—
|
|
|
6,527,318
|
|
|
N/A
|
|||||||||
|
$
|
—
|
|
|
$
|
37,788,000
|
|
|
$
|
—
|
|
|
$
|
341,191
|
|
|
$
|
111,909,473
|
|
|
$
|
4,531,319
|
|
|
$
|
4,478,494
|
|
|
$
|
—
|
|
|
$
|
104,944,525
|
|
|
N/A
|
|
Gross Amount
|
|
Ceded to Other Companies
|
|
Assumed from Other Companies
|
|
Net Amount
|
|
Percentages of Amount Assumed to Net
|
|||||||||
Year Ended December 31, 2017
|
||||||||||||||||||
Title Insurance
|
$
|
138,850,280
|
|
|
$
|
264,159
|
|
|
$
|
2,756
|
|
|
$
|
138,588,877
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Year Ended December 31, 2016
|
||||||||||||||||||
Title Insurance
|
$
|
120,692,847
|
|
|
$
|
140,942
|
|
|
$
|
17,246
|
|
|
$
|
120,569,151
|
|
|
0.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Year Ended December 31, 2015
|
||||||||||||||||||
Title Insurance
|
$
|
112,090,537
|
|
|
$
|
214,667
|
|
|
$
|
33,603
|
|
|
$
|
111,909,473
|
|
|
0.03
|
%
|
Description
|
Balance at Beginning of Period
|
|
Additions Charged to Costs and Expenses
|
|
Additions Charge to Other Accounts – Describe
|
|
Deductions – Describe
|
|
|
Balance at End of Period
|
||||||||||
2017
|
||||||||||||||||||||
Premiums Receivable:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation Provision
|
$
|
372,172
|
|
|
$
|
5,783,429
|
|
|
$
|
—
|
|
|
$
|
(5,779,869
|
)
|
(a)
|
|
$
|
375,732
|
|
Reserves for Claims
|
$
|
35,305,000
|
|
|
$
|
3,311,080
|
|
|
$
|
—
|
|
|
$
|
(3,815,080
|
)
|
(b)
|
|
$
|
34,801,000
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2016
|
||||||||||||||||||||
Premiums Receivable:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation Provision
|
$
|
3,552,779
|
|
|
$
|
2,679,300
|
|
|
$
|
—
|
|
|
$
|
(5,859,907
|
)
|
(a)
|
|
$
|
372,172
|
|
Reserves for Claims
|
$
|
37,788,000
|
|
|
$
|
242,953
|
|
|
$
|
—
|
|
|
$
|
(2,725,953
|
)
|
(b)
|
|
$
|
35,305,000
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2015
|
||||||||||||||||||||
Premiums Receivable:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation Provision
|
$
|
3,022,731
|
|
|
$
|
6,267,911
|
|
|
$
|
—
|
|
|
$
|
(5,737,863
|
)
|
(a)
|
|
$
|
3,552,779
|
|
Reserves for Claims
|
$
|
36,677,000
|
|
|
$
|
4,478,494
|
|
|
$
|
—
|
|
|
$
|
(3,367,494
|
)
|
(b)
|
|
$
|
37,788,000
|
|
(a)
|
Canceled premiums
|
(b)
|
Payments of claims, net of recoveries
|
Exhibit
Number
|
Description
|
|
Location
|
|
|
|
|
2.1
|
|
Incorporated by reference to Exhibit 2.1 to Form 10-K for the year ended December 31, 2016, File No. 11774
|
|
|
|
|
|
3.1(a)
|
|
Incorporated by reference to Exhibit 4.1 to Form S-8 filed August 10, 2009, File No. 333-161209
|
|
|
|
|
|
3.1(b)
|
|
Incorporated by reference to Exhibit 4.2 to Form S-8 filed August 10, 2009, File No. 333-161209
|
|
|
|
|
|
3.1(c)
|
|
Incorporated by reference to Exhibit 4.3 to Form S-8 filed August 10, 2009, File No. 333-161209
|
|
|
|
|
|
3.1(d)
|
|
Incorporated by reference to Exhibit 3.3 to Form 10-Q for the quarter ended June 30, 2002, File No. 11774
|
|
|
|
|
|
3.1(e)
|
|
Incorporated by reference to Exhibit 3.4 to Form 10-Q for the quarter ended March 31, 2003, File No. 11774
|
|
|
|
|
|
3.1(f)
|
|
Incorporated by reference to Exhibit 3.1 to Form 8-K filed on October 31, 2012, File No. 11774
|
|
|
|
|
|
3.2
|
|
Incorporated by reference to Exhibit 3.1 to Form 10-Q filed on November 9, 2015, File No. 11774
|
|
|
|
|
|
4.1
|
|
Incorporated by reference to Exhibit 4.1 to Form 8-K filed on November 2, 2012, File No. 11774
|
|
|
|
|
|
10.1(a)*
|
|
Incorporated by reference to Exhibit 10.1 to Form 8-K filed on May 23, 2006, File No. 11774
|
|
|
|
|
|
10.1(b)*
|
|
Incorporated by reference to Exhibit 10.2 to Form 8-K filed on May 23, 2006, File No. 11774
|
|
|
|
|
|
10.1(c)*
|
|
Incorporated by reference to Exhibit 10.1 to Form 8-K filed on March 6, 2009, File No. 11774
|
|
|
|
|
|
10.2*
|
|
Incorporated by reference to Exhibit 10.7 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.3*
|
|
Incorporated by reference to Exhibit 10.8 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.4*
|
|
Incorporated by reference to Exhibit 10.9 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.5*
|
|
Incorporated by reference to Exhibit 10.10 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.6*
|
|
Incorporated by reference to Exhibit 10.11 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.7*
|
|
Incorporated by reference to Exhibit 10.12 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.8*
|
|
Incorporated by reference to Exhibit 10.13 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.9*
|
|
Incorporated by reference to Exhibit 10.14 to Form 10-K for the year ended December 31, 2008, File No. 11774
|
|
|
|
|
|
10.10(a)*
|
|
Incorporated by reference to Appendix A to the Proxy Statement dated May 26, 2009, File No. 11774
|
|
|
|
|
|
10.10(b)*
|
|
Incorporated by reference to Exhibit 10 to Form 10-Q for the quarter ended June 30, 2011, File No. 11774
|
|
|
|
|
|
10.11
|
|
Incorporated by reference to Exhibit 10.11 to Form 10-K for the year ended December 31, 2016, File No. 11774
|
|
|
|
|
|
10.12
|
|
Incorporated by reference to Exhibit 10.12 to Form 10-K for the year ended December 31, 2016, File No. 11774
|
|
|
|
|
|
10.13
|
|
Incorporated by reference to Exhibit 10.13 to Form 10-K for the year ended December 31, 2016, File No. 11774
|
|
|
|
|
|
10.14*
|
|
Filed herewith
|
|
|
|
|
|
21
|
|
Filed herewith
|
|
|
|
|
|
23
|
|
Filed herewith
|
|
|
|
|
|
31.1
|
|
Filed herewith
|
|
|
|
|
|
31.2
|
|
Filed herewith
|
|
|
|
|
|
32
|
|
Furnished herewith
|
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
Filed herewith
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
Filed herewith
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
Filed herewith
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
Filed herewith
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
Filed herewith
|
|
|
|
|
*
|
Management contract or compensatory plan or arrangement
|
1 Year Investors Title Chart |
1 Month Investors Title Chart |
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