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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 | 1,445 | 15:11:11 |
From Jul 2019 to Jul 2024
Investors Title Company (NASDAQ: ITIC) today announced its results for the third quarter ended September 30, 2018. Net income attributable to the Company was $10.6 million, or $5.61 per diluted share, versus $5.9 million, or $3.13 per diluted share, for the prior year period. The Company set all-time quarterly records for revenues, net premiums written, and net income.
Revenues increased 11.9% to $48.3 million, compared with $43.1 million in the prior year quarter. Net premiums written increased 5.3%, primarily due to higher real estate values, as well as a shift to higher-premium purchase activity, which offset the decline in refinance activity. The addition of new agencies over the past year also contributed to the higher level of net premiums written. In accordance with a new accounting standard adopted in 2018, market gains resulted in recognition of a $2.9 million net unrealized gain on equity investments.
Operating expenses increased 4.3% versus the prior year quarter, mainly as a result of increases in personnel expenses and commissions, partially offset by a decline in the provision for claims. Personnel costs increased as a result of higher staffing levels related to the support of growth, an increase in contract services related to software initiatives, normal inflationary increases in salaries and benefits, and an increase in the accrual for incentive compensation. Commissions were up commensurate with the increase in agency premiums. Claims expense declined primarily due to favorable loss experience in the current reporting period. In addition, the Company’s net income benefitted from recent tax reform legislation.
For the nine months ended September 30, 2018, net income attributable to the Company increased 35.3% to $21.8 million, or $11.47 per diluted share, versus $16.1 million, or $8.48 per diluted share, for the prior year period. Revenues increased 2.4% to $124.0 million, mainly due to an increase in the net unrealized gain on equity investments and higher earnings from partnership investments. Results for the year-to-date period have been shaped predominantly by the same factors that affected the third quarter, with the exception of lower commissions due to a decrease in agency premiums.
Chairman J. Allen Fine added, “We are pleased to report that in the third quarter, we set a new record level of quarterly revenues and earnings. Overall economic strength and record-low levels of unemployment continue to drive strong demand in the housing market as well as higher average real estate values. These factors overcame reductions in refinance activity, which remains suppressed as interest rates continue to rise, resulting in an increase in net premiums written for the quarter. The combination of solid revenue growth, stable levels of claims experience, and management of overhead expenses drove a record level of earnings for the quarter.”
Investors Title Company’s subsidiaries issue and underwrite title insurance policies. The Company also provides investment management services and services in connection with tax-deferred exchanges of like-kind property.
Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, among others, any statements regarding the Company’s expected performance for this year, future home price fluctuations, changes in home purchase or refinance activity and the mix thereof, interest rate changes, expansion of the Company’s market presence, enhancing competitive strengths, positive development in housing affordability, wages, unemployment or overall economic conditions 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; changes in the economy; loss of agency relationships, or significant reductions in agent-originated business; difficulties managing growth, whether organic or through acquisitions 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, 2017, as filed with the Securities and Exchange Commission, and in subsequent filings.
Investors Title Company and Subsidiaries
Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2018 and 2017
(in thousands, except per share amounts)
(unaudited)
Three Months EndedSeptember 30,
Nine Months EndedSeptember 30,
2018 2017 2018 2017 Revenues: Net premiums written $ 39,422 $ 37,428 $ 104,123 $ 104,838 Escrow and other title-related fees 1,812 1,470 5,465 5,427 Non-title services 1,795 1,620 5,083 4,498 Interest and dividends 1,138 1,087 3,381 3,298 Other investment income 829 610 2,279 1,605 Net realized investment gains 188 804 629 990 Net unrealized gain on equity investments 2,920 — 2,626 — Other 157 116 387 397 Total Revenues 48,261 43,135 123,973 121,053 Operating Expenses: Commissions to agents 18,490 17,641 48,942 50,570 Provision for claims 997 1,855 155 2,715 Personnel expenses 11,096 10,082 33,234 29,982 Office and technology expenses 2,208 2,062 6,603 5,985 Other expenses 2,910 2,578 8,440 8,087 Total Operating Expenses 35,701 34,218 97,374 97,339 Income before Income Taxes 12,560 8,917 26,599 23,714 Provision for Income Taxes 1,927 2,990 4,873 7,647 Net Income 10,633 5,927 21,726 16,067 Net Loss Attributable to Noncontrolling Interests 1 — 31 11 Net Income Attributable to the Company $ 10,634 $ 5,927 $ 21,757 $ 16,078 Basic Earnings per Common Share $ 5.64 $ 3.14 $ 11.53 $ 8.52 Weighted Average Shares Outstanding – Basic 1,887 1,887 1,886 1,886 Diluted Earnings per Common Share $ 5.61 $ 3.13 $ 11.47 $ 8.48 Weighted Average Shares Outstanding – Diluted 1,897 1,896 1,896 1,896
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of September 30, 2018 and December 31, 2017
(in thousands)
(unaudited)
September 30, 2018
December 31,2017 Assets Cash and cash equivalents $ 36,862 $ 20,214 Investments: Fixed maturities, available-for-sale, at fair value 91,827 103,341 Equity securities, at fair value 51,372 47,367 Short-term investments 27,693 23,780 Other investments 11,997 12,032 Total investments 182,889 186,520 Premiums and fees receivable 12,588 10,031 Accrued interest and dividends 1,242 1,100 Prepaid expenses and other receivables 7,601 7,730 Property, net 10,454 10,173 Goodwill and other intangible assets, net 10,906 11,357 Other assets 1,459 1,403 Current income taxes receivable 2,575 385 Total Assets $ 266,576 $ 248,913 Liabilities and Stockholders’ Equity Liabilities: Reserve for claims $ 32,375 $ 34,801 Accounts payable and accrued liabilities 27,437 27,565 Deferred income taxes, net 11,223 8,626 Total liabilities 71,035 70,992 Stockholders’ Equity: Common stock – no par value (10,000 authorized shares; 1,887 and 1,886 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary) — — Retained earnings 195,220 161,891 Accumulated other comprehensive income 319 15,945 Total stockholders’ equity attributable to the Company 195,539 177,836 Noncontrolling interests 2 85 Total stockholders’ equity 195,541 177,921 Total Liabilities and Stockholders’ Equity $ 266,576 $ 248,913
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
For the Three and Nine Months Ended September 30, 2018 and 2017
(in thousands)
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2018 % 2017 % 2018 % 2017 % Branch $ 11,905 30.2 $ 11,227 30.0 $ 31,258 30.0 $ 30,904 29.5 Agency 27,517 69.8 26,201 70.0 72,865 70.0 73,934 70.5 Total $ 39,422 100.0 $ 37,428 100.0 $ 104,123 100.0 $ 104,838 100.0
View source version on businesswire.com: https://www.businesswire.com/news/home/20181102005047/en/
Investors Title CompanyElizabeth B. Lewter919-968-2200
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