Investors Title (NASDAQ:ITIC)
Historical Stock Chart
From Oct 2019 to Oct 2024
J. Allen Fine, Chairman of Investors Title Company,
(NASDAQ: ITIC) announced that for the second quarter ended June 30,
2006, the Company reported net income of $4,315,537, an increase of
11.7% compared with $3,861,998 for the prior year period. Net income
per diluted share equaled $1.68, an increase of 13.5% compared with
$1.48 per diluted share in the same period last year. Net premiums
written decreased 4.4% to $19,123,591 and revenues increased 1.2% to
$23,126,621 compared with the prior year period.
For the six-month period ended June 30, 2006, the Company reported
net income $7,190,478, an increase of 32.1%, compared with $5,442,492
for the same six-month period in 2005. Diluted earnings per share were
$2.79, an increase of 34.1% compared with $2.08 for the same six-month
ended period in 2005. Net premiums written decreased 3.7% to
$35,755,217 and revenues increased 2.7% to $43,305,469 compared with
the prior year.
Growth in the fee income generated in the exchange services
segment and the Trust division coupled with an increase in investment
income drove the overall increase in total revenue. Offsetting these
increases was a decline in premiums written resulting primarily from a
lower level of real estate activity. Operating expenses remained flat
as the decline in commissions paid to agents was offset by an increase
in personnel costs. The effective tax rate declined resulting
primarily from higher interest rates and higher balances invested in
tax-exempt securities.
Chairman Fine added, "The decline in our premium revenue has
followed the overall softening in the residential housing market this
year. As generally expected, transaction volume and mortgage loan
originations have trended down as a result of higher mortgage rates.
Countering this trend slightly has been ongoing strength in the
commercial real estate sector."
Investors Title Company is engaged through its subsidiaries in the
business of issuing and underwriting title insurance policies. The
Company also provides services in connection with tax-deferred
exchanges of like-kind property as well as investment management
services to individuals, trusts, foundations and businesses.
Certain statements contained herein may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include any predictions regarding
activity in the U.S. real estate market. These statements involve a
number of risks and uncertainties that could cause actual results to
differ materially from anticipated and historical results. For more
details on risk, uncertainties and other factors that could affect
expectations, refer to the Company's Annual Report on Form 10-K for
the year ended December 31, 2005, as filed with the Securities and
Exchange Commission.
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Investors Title Company and Subsidiaries
Consolidated Statements of Income
June 30, 2006 and 2005
(Unaudited)
For The For The
Three Months Six Months
Ended Ended
June 30 June 30
-------------------- --------------------
2006 2005 2006 2005
--------- --------- --------- -----------
Revenues:
Underwriting income:
Premiums Written $19,222,175 $20,052,131 $35,968,444 $37,298,168
Less-premiums for
reinsurance
ceded 98,584 45,736 213,227 184,815
----------- ----------- ----------- -----------
Net premiums
written 19,123,591 20,006,395 35,755,217 37,113,353
Investment income-
interest and
dividends 1,034,696 808,559 2,028,750 1,561,324
Net realized gain
(loss) on sales of
investments (17,190) 30,801 544,457 19,907
Exchange services
revenue 1,908,357 1,239,793 2,936,089 2,049,432
Other 1,077,167 768,514 2,040,956 1,439,625
----------- ----------- ----------- -----------
Total 23,126,621 22,854,062 43,305,469 42,183,641
----------- ----------- ----------- -----------
Operating Expenses:
Commissions to
agents 7,289,322 7,848,781 13,572,718 14,840,530
Provision for
claims 2,030,412 2,172,108 3,885,691 4,071,113
Salaries, employee
benefits and
payroll taxes 4,917,022 4,413,567 9,922,869 9,780,879
Office occupancy
and operations 1,266,042 1,239,870 2,731,355 2,589,076
Business development 547,505 464,388 1,053,163 891,861
Taxes, other than
payroll and income 146,007 209,230 296,892 319,984
Premium and
retaliatory taxes 328,542 393,770 670,610 793,315
Professional fees 737,534 653,251 1,325,156 1,091,181
Other 219,728 66,099 438,567 111,210
----------- ----------- ----------- -----------
Total 17,482,114 17,461,064 33,897,021 34,489,149
----------- ----------- ----------- -----------
Income Before Income
Taxes 5,644,507 5,392,998 9,408,448 7,694,492
----------- ----------- ----------- -----------
Provision For Income
Taxes 1,328,970 1,531,000 2,217,970 2,252,000
----------- ----------- ----------- -----------
Net Income $ 4,315,537 $ 3,861,998 $ 7,190,478 $ 5,442,492
=========== =========== =========== ===========
Basic Earnings Per
Common Share $ 1.70 $ 1.51 $ 2.83 $ 2.12
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Basic 2,537,883 2,563,094 2,543,475 2,563,793
=========== =========== =========== ===========
Diluted Earnings Per
Common Share $ 1.68 $ 1.48 $ 2.79 $ 2.08
=========== =========== =========== ===========
Weighted Average Shares
Outstanding - Diluted 2,572,062 2,607,611 2,578,743 2,616,418
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2006 and December 31, 2005
(Unaudited)
June 30, Dec. 31,
2006 2005
--------------------------
Assets
Cash and cash equivalents $ 3,691,551 $ 14,608,481
Investments in securities:
Fixed maturities:
Held-to-maturity, at amortized cost 1,199,924 1,648,708
Available-for-sale, at fair value 91,429,904 75,472,342
Equity securities, available-for-sale
at fair value 11,872,205 9,437,678
Short-term investments 4,386,825 7,257,734
Other investments 1,662,557 1,336,111
------------ ------------
Total investments 110,551,415 95,152,573
Premiums receivable, net 7,680,380 7,818,558
Accrued interest and dividends 1,102,015 1,010,198
Prepaid expenses and other assets 2,021,482 1,592,326
Property acquired in settlement of claims 413,480 359,980
Property, net 5,907,523 5,466,765
Deferred income taxes, net 2,917,684 2,462,647
------------ ------------
Total Assets $134,285,530 $128,471,528
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Reserves for claims $ 35,866,000 $ 34,857,000
Accounts payable and accrued liabilities 8,579,869 7,928,384
Commissions and reinsurance payables 358,385 442,098
Current income taxes payable 279,123 946,790
------------ ------------
Total liabilities 45,083,377 44,174,272
------------ ------------
Stockholders' Equity:
Common stock - no par value (shares authorized
10,000,000; 2,534,036 and 2,549,434 shares
issued and outstanding 2006 and 2005,
respectively, excluding 291,792 and 297,783 shares
2006 and 2005, respectively, of common
stock held by the Company's subsidiary) 1 1
Retained earnings 87,591,774 81,477,022
Accumulated other comprehensive income
(net unrealized gain on investments) 1,610,378 2,820,233
------------ ------------
Total stockholders' equity 89,202,153 84,297,256
------------ ------------
Total Liabilities and Stockholders' Equity $134,285,530 $128,471,528
============ ============
Investors Title Company and Subsidiaries
Net Premiums Written By State
June 30, 2006 and 2005
(Unaudited)
For the Three Months For the Six Months
Ended Ended
June 30 June 30
----------------------- -----------------------
State 2006 2005 2006 2005
---------------------------------------------- -----------------------
Alabama $ 330,545 $ 379,273 $ 574,181 $ 730,003
Florida 327,956 462,331 606,291 771,940
Illinois 280,013 278,550 527,908 491,330
Kentucky 583,539 545,873 1,157,037 984,840
Maryland 407,905 487,882 781,674 860,528
Michigan 881,521 1,273,971 1,758,830 2,385,378
Minnesota 304,900 259,992 642,069 528,792
Mississippi 167,225 298,242 301,677 561,593
Nebraska 197,136 180,377 331,446 385,695
New York 709,195 774,372 1,212,791 1,360,377
North Carolina 9,773,452 9,606,689 18,214,934 17,365,468
Pennsylvania 410,595 448,823 726,507 827,648
South Carolina 1,536,781 1,340,095 2,938,854 3,387,988
Tennessee 614,769 722,736 1,281,092 1,290,584
Virginia 1,897,939 2,211,161 3,572,042 3,954,013
West Virginia 640,423 582,511 1,095,841 1,012,065
Other 158,281 199,253 238,844 385,880
----------- ----------- ----------- -----------
Direct Premiums 19,222,175 20,052,131 35,962,018 37,284,122
Reinsurance Assumed - - 6,426 14,046
Reinsurance Ceded (98,584) (45,736) (213,227) (184,815)
----------- ----------- ----------- -----------
Net Premiums Written $19,123,591 $20,006,395 $35,755,217 $37,113,353
=========== =========== =========== ===========
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2006 and 2005
(Unaudited)
For The Three Months Ended
June 30
------------------------------------------
2006 % 2005 %
------------------------------------------
Branch $9,004,581 47 $9,131,282 46
Agency 10,119,010 53 10,875,113 54
------------------------------------------
Total $19,123,591 100 $20,006,395 100
==========================================
Investors Title Company and Subsidiaries
Net Premiums Written By Branch and Agency
June 30, 2006 and 2005
(Unaudited)
For The Six Months Ended
June 30
-----------------------------------------------
2006 % 2005 %
-----------------------------------------------
Branch $16,730,965 47 $16,381,111 44
Agency 19,024,252 53 20,732,242 56
------------------------- -----------------------
Total $35,755,217 100 $37,113,353 100
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