Current Report Filing (8-k)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

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FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

	November 3, 2014
	Date of Report (Date of earliest event reported)
	INVESTORS TITLE COMPANY
	(Exact name of Registrant as specified in its charter)

North Carolina	0-11774	56-1110199
(State or Other Jurisdiction of	(Commission	(I.R.S. Employer
Incorporation or Organization)	File Number)	Identification No.)
121 North Columbia Street
Chapel Hill, North Carolina		27514
(Address of Principal Executive Offices)		(Zip Code)

	[phone]
	Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02.  Results of Operations and Financial Condition

Attached as Exhibit 99.1 and incorporated herein by reference is a copy of the press release of Investors Title Company, dated November 3, 2014, reporting Investors Title Company's financial results for the fiscal quarter ended September 30, 2014.

The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.


Item 9.01.  Financial Statements and Exhibits

(c) Exhibits.  The following exhibit accompanies this Report:

Exhibit 99.1 – Press Release of Investors Title Company dated November 3, 2014.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		INVESTORS TITLE COMPANY
Date:	November 3, 2014		By:	/s/ James A. Fine, Jr.
				James A. Fine, Jr.
				President, Treasurer and
				Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release issued by Investors Title Company on November 3, 2014.

Exhibit 99.1

Investors Title Company Announces Third Quarter 2014 Results

CHAPEL HILL, N.C.--(BUSINESS WIRE)--November 3, 2014--Investors Title Company today announced its results for the third quarter ended September 30, 2014. Net income attributable to the Company decreased 53.0% to $2,594,490, or $1.28 per diluted share, compared with $5,515,798, or $2.66 per diluted share, for the prior year quarter.

Revenues decreased 12.2% to $29,508,230 versus the prior year quarter, primarily due to a 13.4% decrease in net premiums written. Higher mortgage interest rates led to lower levels of refinance activity, while purchase activity remained relatively constant with last year.

Operating expenses increased 2.3% to $25,909,740 versus the prior year quarter, primarily as a result of a higher level of claims expense, following a reduction in the reserves for claims in the prior year period. The prior period reduction reflected a change in estimate related to certain actuarial assumptions stemming from improved claims experience in recent post-recession policy years. The increase in the claims provision was partially offset by a decrease in agent commissions resulting from decreased activity in markets which are predominantly agent-based, and a decrease in incentive compensation and certain employee benefits.

For the nine months ended September 30, 2014, net income attributable to the Company decreased 46.1% to $6,954,526, or $3.41 per diluted share, compared with $12,898,203, or $6.19 per diluted share, for the prior year period, primarily due to changes in the provision for claims. Revenues decreased 3.1% to $91,183,857 versus the prior year period, primarily due to a 4.3% decrease in net premiums written. Premiums related to refinance activity were down substantially for the first three quarters of the year, while purchase-related premiums were up slightly. Operating expenses increased 8.4% to $81,549,808 versus the prior year period, driven mostly by an increase in the claims provision primarily related to the prior year change in estimate.

Chairman J. Allen Fine added, “As expected, the drop in refinance activity that began last year has continued in 2014, and led to a reduction in premium volumes for both the quarter and year-to-date periods. We are, however, pleased with the overall strength in home purchase activity, as well as sustained increases in the level of home prices. Although unusual adjustments to the claims reserve in the prior year led to an unfavorable comparison, we remain encouraged by the general long-term trend of claims activity. We will continue to monitor and respond to changes in the market, while remaining focused on enhancing our long-term competitive strengths.”

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Investors Title Company is engaged through its subsidiaries in the business of issuing and underwriting title insurance policies. The Company also provides investment management services to individuals, companies, banks and trusts, as well as services in connection with tax-deferred exchanges of like-kind property.

Certain statements contained herein may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, any statements regarding future home price increases, increases in home purchase activity, expansion of the Company’s market presence, enhancing competitive strengths or statements regarding our actuarial assumptions and the application of recent historical claims experience to future periods. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from anticipated and historical results. Such risks and uncertainties include, without limitation: the cyclical demand for title insurance due to changes in the residential and commercial real estate markets; the occurrence of fraud, defalcation or misconduct; variances between actual claims experience and underwriting and reserving assumptions, including the limited predictive power of historical claims experience; declines in the performance of the Company’s investments; government regulation; and other considerations set forth under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission, and in subsequent filings.

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Investors Title Company and Subsidiaries Consolidated Statements of Income For the Three and Nine Months Ended September 30, 2014 and 2013
		Three Months Ended September 30,								Nine Months Ended September 30,
		2014				2013				2014				2013
Revenues:
Net premiums written		$	26,356,835			$	30,431,560			$	81,115,940			$	84,787,318
Investment income - interest and dividends		1,064,995				990,338				3,130,846				2,835,870
Net realized gain on investments		8,689				261,938				592,908				333,554
Other		2,077,711				1,921,403				6,344,163				6,190,170
Total Revenues		29,508,230				33,605,239				91,183,857				94,146,912
Operating Expenses:
Commissions to agents		14,440,264				18,142,697				48,242,923				49,240,917
Provision (benefit) for claims		1,507,814				(3,037,101		)		4,177,478				(2,429,289		)
Salaries, employee benefits and payroll taxes		6,609,425				7,133,497				19,250,116				19,533,970
Office occupancy and operations		1,257,009				1,165,772				3,683,980				3,266,112
Business development		552,215				606,549				1,581,872				1,487,635
Filing fees, franchise and local taxes		233,079				141,373				648,022				510,893
Premium and retaliatory taxes		491,927				592,717				1,332,492				1,563,764
Professional and contract labor fees		621,305				404,206				1,976,272				1,514,749
Other		196,702				179,006				656,653				560,170
Total Operating Expenses		25,909,740				25,328,716				81,549,808				75,248,921
Income before Income Taxes		3,598,490				8,276,523				9,634,049				18,897,991
Provision for Income Taxes		1,004,000				2,733,000				2,656,000				5,944,000
Net Income		2,594,490				5,543,523				6,978,049				12,953,991
Net Income Attributable to Redeemable Noncontrolling Interest		—				(27,725		)		(23,523		)		(55,788		)
Net Income Attributable to the Company		$	2,594,490			$	5,515,798			$	6,954,526			$	12,898,203
Basic Earnings per Common Share		$	1.28			$	2.67			$	3.42			$	6.26
Weighted Average Shares Outstanding – Basic		2,028,818				2,069,081				2,033,637				2,059,226
Diluted Earnings per Common Share		$	1.28			$	2.66			$	3.41			$	6.19
Weighted Average Shares Outstanding – Diluted		2,032,644				2,074,940				2,038,875				2,083,560

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Investors Title Company and Subsidiaries Consolidated Balance Sheets As of September 30, 2014 and December 31, 2013 (Unaudited)
	September 30, 2014				December 31, 2013
Assets:
Investments in securities:
Fixed maturities, available-for-sale, at fair value	$	94,995,138			$	91,445,413
Equity securities, available-for-sale, at fair value	37,461,674				36,144,065
Short-term investments	6,154,749				7,926,373
Other investments	7,950,676				7,247,831
Total investments	146,562,237				142,763,682
Cash and cash equivalents	23,622,522				23,626,761
Premium and fees receivable	8,489,096				8,750,224
Accrued interest and dividends	1,151,250				1,006,698
Prepaid expenses and other assets	8,677,087				7,466,141
Property, net	5,369,084				4,325,538
Current income taxes recoverable	1,624,024				366,772
Total Assets	$	195,495,300			$	188,305,816
Liabilities and Stockholders’ Equity
Liabilities:
Reserves for claims	$	36,252,000			$	35,360,000
Accounts payable and accrued liabilities	18,683,691				20,324,190
Deferred income taxes, net	5,893,471				4,013,983
Total liabilities	60,829,162				59,698,173
Redeemable Noncontrolling Interest	—				545,489
Stockholders’ Equity:
Common stock - no par value (10,000,000 authorized shares; 2,028,818 and
2,037,135 shares issued and outstanding 2014 and 2013, respectively, excluding
291,676 shares for 2014 and 2013 of common stock held by the Company's
subsidiary)	1				1
Retained earnings	122,545,561				116,714,749
Accumulated other comprehensive income	12,120,576				11,347,404
Total stockholders’ equity	134,666,138				128,062,154
Total Liabilities and Stockholders’ Equity	$	195,495,300			$	188,305,816

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Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency For the Three and Nine Months Ended September 30, 2014 and 2013
				Three Months Ended September 30,										Nine Months Ended September 30,
				2014			%		2013			%		2014			%		2013			%
Branch				$	6,815,125		25.9		$	6,630,345		21.8		$	17,922,166		22.1		$	19,746,738		23.3
Agency				19,541,710			74.1		23,801,215			78.2		63,193,774			77.9		65,040,580			76.7
Total				$	26,356,835		100.0		$	30,431,560		100.0		$	81,115,940		100.0		$	84,787,318		100.0

CONTACT:
Investors Title Company
Elizabeth B. Lewter, 919-968-2200