Investors Title Company Announces First Quarter 2014 Financial Results


The following excerpt is from the company's SEC filing.

CHAPEL HILL, N.C.--(BUSINESS WIRE)--May 6, 2014--Investors Title Company (NASDAQ:ITIC) today announced its results for the quarter ended March 31, 2014. The Company reported net income of $986,438, or $0.48 per diluted share, compared with $3,376,730, or $1.62 per diluted share, for the prior year period.

The Company achieved record first quarter revenues totaling $28,454,074, an increase of 6.0% versus the prior year period, resulting primarily from increases in premium volumes and realized gains on investments. As the overall economy has continue d to improve, higher levels of real estate purchase activity and higher home prices across many of our markets helped drive an increase in premiums during the period. Rising interest rates however, led to a significant drop in refinance activity, which partially offset the increased purchase-related business.

Operating expenses increased 22.6% versus the prior year period, mainly due to increases in variable expenses such as the provision for claims and commissions. Overall, the trend in new claim filings continued to improve. During the first quarter however, the occurrence of a few large claims related to older policy years contributed to the increase in the claims provision. Positive legal developments in several claim matters and a significant recovery in the prior year period also contributed to an unfavorable comparison. Commissions increased at a higher rate than premiums because there was a greater proportion of agent business than in the prior year period. Other operating expenses, as a whole, were largely in line with the prior year quarter.

Chairman J. Allen Fine added, “We are pleased to see increases in the level of home prices as well as continued strength in home purchase activity. As expected, however, the drop in refinance activity had a significant impact on premium volumes for the quarter. Although a few unusual claims matters led to an unfavorable comparison to the prior year, we remain encouraged by the general long-term trend of claims activity.”

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.

Investors Title Company and Subsidiaries Consolidated Statements of Income For the Three Months Ended March 31, 2014 and 2013 (Unaudited)     Three Months Ended March 31, 2014 2013 Revenues: Net premiums written $ 24,909,252 $ 23,925,997 Investment income - interest and dividends 1,026,416 920,485 Net realized gain on investments 492,137 16,344 Other 2,026,269 1,985,447   Total Revenues 28,454,074 26,848,273     Operating Expenses: Commissions to agents 15,456,278 13,489,431 Provision (benefit) for claims 2,375,383 (389,058 ) Salaries, employee benefits and payroll taxes 6,185,761 6,150,750 Office occupancy and operations 1,180,327 1,074,233 Business development 517,894 428,733 Filing fees, franchise and local taxes 189,600 180,570 Premium and retaliatory taxes 294,474 440,523 Professional and contract labor fees 688,058 575,337 Other 209,784 146,336   Total Operating Expenses 27,097,559 22,096,855     Income Before Income Taxes 1,356,515 4,751,418     Provision For Income Taxes 371,000 1,365,000     Net Income 985,515 3,386,418   Net Loss (Income) Attributable to Redeemable Noncontrolling Interests 923 (9,688 )   Net Income Attributable to the Company $ 986,438 $ 3,376,730     Basic Earnings Per Common Share $ 0.48 $ 1.65     Weighted Average Shares Outstanding - Basic 2,037,164 2,044,801     Diluted Earnings Per Common Share $ 0.48 $ 1.62     Weighted Average Shares Outstanding - Diluted 2,043,759 2,083,999  

Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2014 and December 31, 2013 (Unaudited)   March 31, 2014 December 31, 2013 Assets Investments in securities: Fixed maturities, available-for-sale, at fair value $ 90,859,563 $ 91,445,413 Equity securities, available-for-sale, at fair value 36,286,771 36,144,065 Short-term investments 8,941,000 7,926,373 Other investments 7,485,688 7,247,831 Total investments 143,573,022 142,763,682   Cash and cash equivalents 20,592,694 23,626,761 Premiums and fees receivable, net 7,480,771 8,750,224 Accrued interest and dividends 1,124,075 1,006,698 Prepaid expenses and other assets 7,163,324 7,466,141 Property, net 4,717,202 4,325,538 Current income taxes recoverable 676,045 366,772   Total Assets $ 185,327,133 $ 188,305,816   Liabilities and Stockholders' Equity Liabilities: Reserves for claims $ 36,465,000 $ 35,360,000 Accounts payable and accrued liabilities 15,490,419 20,324,190 Deferred income taxes, net 4,017,438 4,013,983 Total liabilities 55,972,857 59,698,173   Redeemable Noncontrolling Interest 480,546 545,489   Stockholders' Equity: Common stock - no par value (shares authorized 10,000,000; 2,036,831 and 2,037,135 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively, excluding 291,676 shares for 2014 and 2013 of common stock held by the Company's subsidiary) 1 1 Retained earnings 117,522,858 116,714,749 Accumulated other comprehensive income 11,350,871 11,347,404 Total stockholders' equity 128,873,730 128,062,154   Total Liabilities and Stockholders' Equity $ 185,327,133 $ 188,305,816

Investors Title Company and Subsidiaries Net Premiums Written By Branch and Agency For the Three Months Ended March 31, 2014 and 2013 (Unaudited)     Three Months Ended March 31, 2014 %   2013 % Branch $ 4,831,679 19.4 $ 5,783,629 24.2   Agency   20,077,573 80.6   18,142,368 75.8   Total $ 24,909,252 100.0 $ 23,925,997 100.0

The above information was disclosed in a filing to the SEC. To see this filing in its entirety, click here. Investors Title Company next reports earnings on May 06, 2014.

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Investors Title Company director just disposed of 245 shares - Dec. 2, 2014

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