Business Wire – Wed Aug 6, 7:29AM CDT
Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2025. The Company reported net income of $12.3 million, or $6.48 per diluted share, compared to $8.9 million, or $4.70 per diluted share, for the prior year period.
Revenues increased 12.6% to $73.6 million, compared to $65.4 million in the prior year period. Net premiums written and escrow and title-related fees increased by $4.0 million, primarily driven by higher real estate activity levels. Other revenue increased $2.7 million due to a gain on assets transferred to a joint venture. Non-title services revenue increased $1.2 million, largely attributable to increases in revenue from like-kind exchanges and management services. Net investment gains increased by $862 thousand due to the impact of changes in the estimated fair value of equity security investments.
Operating expenses increased 6.9% to $57.9 million, compared to $54.1 million in the prior year period. The increase in operating expenses was largely driven by higher agent commissions and an increase in the provision for claims. The rise in agent commissions corresponds with the growth in agent business. The claims expense increased due to higher reserves on reported claims and a reduction in favorable loss development during the current period.
Income before income taxes increased to $15.8 million for the current year quarter, versus $11.3 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $13.7 million for the current year quarter, versus $10.0 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).
For the six months ended June 30, 2025, net income increased $2.1 million to $15.4 million, or $8.16 per diluted share, versus $13.4 million, or $7.10 per diluted share, for the prior year period. Revenues increased 9.6% to $130.2 million, compared with $118.8 million for the prior year period. Operating expenses increased 8.4% to $110.4 million, compared to $101.8 million for the prior year period. Income before income taxes increased to $19.9 million for the current year, versus $17.1 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $18.9 million for the current year period, versus $13.4 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure). Overall results for the year-to-date period have been shaped predominantly by the same factors that affected the second quarter. The one notable exception was lower net investment gains for the first six months of 2025, compared to the same prior year period, which were driven by negative changes in the estimated fair value of equity security investments and a decrease in realized gains from the sale of investment securities.
Chairman J. Allen Fine commented, “We are pleased to report our strongest quarterly performance in over three years, reflecting solid execution and broad-based revenue growth. The increase in profitability was driven largely by growth in title insurance revenues, aided by increases in our non-title business segments, particularly our like-kind exchange subsidiary.
“Despite ongoing market headwinds, incoming order volumes in the second quarter exceeded those of the same period last year. As a result, we are entering the third quarter with a stronger pipeline of open orders compared to a year ago. We believe this positions us well for continued momentum in the quarters ahead.”
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.
Cautionary Statements Regarding Forward-Looking Statements
Certain statements contained herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of words such as “plan,” expect,” “aim,” “believe,” “project,” “anticipate,” “intend,” “estimate,” “should,” “could,” “would,” and other expressions that indicate future events and trends. Such statements include, among others, any statements regarding the Company’s expected performance for future periods and the full year, the impact of order volumes on results in future quarters, future home price fluctuations, changes in home purchase or refinance demand, activity and the mix thereof, interest rate changes, expansion of the Company’s market presence, enhancement of competitive strengths, execution on expense management strategies, 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; changes in government regulations and policy, including as a result of the Trump administration such as policies related to tariffs and taxes and their impact on the macroeconomic environment; changes in the economy; the impact of inflation and responses by government regulators, including the Federal Reserve, such as changes in interest rates; 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, 2024 as filed with the Securities and Exchange Commission, and in subsequent filings.
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Investors Title Company and Subsidiaries |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues: |
|
|
|
|
|
|
|||||
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Net premiums written |
$ |
54,496 |
|
$ |
51,416 |
$ |
100,841 |
|
$ |
91,596 |
|
|
Escrow and other title-related fees |
|
5,694 |
|
|
4,801 |
|
9,586 |
|
|
8,524 |
|
|
Non-title services |
|
5,477 |
|
|
4,304 |
|
10,086 |
|
|
8,608 |
|
|
Interest and dividends |
|
2,361 |
|
|
2,568 |
|
4,700 |
|
|
5,088 |
|
|
Other investment income |
|
609 |
|
|
890 |
|
1,019 |
|
|
1,001 |
|
|
Net investment gains |
|
2,104 |
|
|
1,242 |
|
925 |
|
|
3,664 |
|
|
Other |
|
2,908 |
|
|
161 |
|
3,057 |
|
|
360 |
|
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Total Revenues |
|
73,649 |
|
|
65,382 |
|
130,214 |
|
|
118,841 |
|
|
|
|
|
|
|
|
|
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Operating Expenses: |
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|
|
|
|
|
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Commissions to agents |
|
29,077 |
|
|
26,550 |
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53,934 |
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46,420 |
|
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Provision for claims |
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2,080 |
|
|
905 |
|
2,403 |
|
|
1,815 |
|
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Personnel expenses |
|
17,460 |
|
|
18,154 |
|
35,794 |
|
|
36,736 |
|
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Office and technology expenses |
|
4,327 |
|
|
4,308 |
|
8,867 |
|
|
8,773 |
|
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Other expenses |
|
4,907 |
|
|
4,198 |
|
9,365 |
|
|
8,033 |
|
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Total Operating Expenses |
|
57,851 |
|
|
54,115 |
|
110,363 |
|
|
101,777 |
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|
|
|
|
|
|
|
|
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Income before Income Taxes |
|
15,798 |
|
|
11,267 |
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19,851 |
|
|
17,064 |
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|
|
|
|
|
|
|
|
|||||
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Provision for Income Taxes |
|
3,520 |
|
|
2,396 |
|
4,402 |
|
|
3,668 |
|
|
|
|
|
|
|
|
|
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Net Income |
$ |
12,278 |
|
$ |
8,871 |
$ |
15,449 |
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$ |
13,396 |
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Basic Earnings per Common Share |
$ |
6.51 |
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$ |
4.71 |
$ |
8.19 |
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$ |
7.10 |
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|
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|
|
|
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Weighted Average Shares Outstanding – Basic |
|
1,887 |
|
|
1,884 |
|
1,886 |
|
|
1,886 |
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|
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|
|
|
|
|
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Diluted Earnings per Common Share |
$ |
6.48 |
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$ |
4.70 |
$ |
8.16 |
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$ |
7.10 |
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|
|
|
|
|
|
|
|
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Weighted Average Shares Outstanding – Diluted |
|
1,894 |
|
|
1,886 |
|
1,894 |
|
|
1,887 |
|
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Investors Title Company and Subsidiaries |
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June 30, 2025 |
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December 31, 2024 |
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Assets |
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Cash and cash equivalents |
$ |
29,683 |
|
$ |
24,654 |
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Investments: |
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Fixed maturity securities, available-for-sale, at fair value |
|
118,450 |
|
|
112,972 |
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Equity securities, at fair value |
|
34,798 |
|
|
39,893 |
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Short-term investments |
|
60,376 |
|
|
59,101 |
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Other investments |
|
23,029 |
|
|
20,578 |
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Total investments |
|
236,653 |
|
|
232,544 |
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|
|
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Premiums and fees receivable |
|
16,973 |
|
|
16,054 |
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Accrued interest and dividends |
|
1,611 |
|
|
1,469 |
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Prepaid expenses and other receivables |
|
10,129 |
|
|
7,033 |
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Property, net |
|
28,480 |
|
|
27,935 |
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Goodwill and other intangible assets, net |
|
10,617 |
|
|
15,071 |
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Lease assets |
|
7,781 |
|
|
6,156 |
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Other assets |
|
2,703 |
|
|
2,655 |
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Current income taxes receivable |
|
1,194 |
|
|
— |
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Total Assets |
$ |
345,824 |
|
$ |
333,571 |
|
|
|
|
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Liabilities and Stockholders’ Equity |
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|
|
||
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Liabilities: |
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|
|
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Reserve for claims |
$ |
38,051 |
|
$ |
37,060 |
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Accounts payable and accrued liabilities |
|
29,791 |
|
|
34,011 |
|
Lease liabilities |
|
8,010 |
|
|
6,356 |
|
Current income taxes payable |
|
— |
|
|
276 |
|
Deferred income taxes, net |
|
3,795 |
|
|
4,095 |
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Total liabilities |
|
79,647 |
|
|
81,798 |
|
|
|
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|
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Stockholders’ Equity: |
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Common stock – no par value (10,000 authorized shares; 1,888 and 1,886 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively, excluding in each period 292 shares of common stock held by the Company’s subsidiary) |
|
— |
|
|
— |
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Retained earnings |
|
265,355 |
|
|
251,418 |
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Accumulated other comprehensive income |
|
822 |
|
|
355 |
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Total stockholders’ equity |
|
266,177 |
|
|
251,773 |
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Total Liabilities and Stockholders’ Equity |
$ |
345,824 |
|
$ |
333,571 |
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Investors Title Company and Subsidiaries |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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|
2025 |
% |
2024 |
% |
2025 |
% |
2024 |
% |
||||
|
Direct |
$ |
15,823 |
29.0 |
$ |
15,531 |
30.2 |
$ |
29,357 |
29.1 |
$ |
28,852 |
31.5 |
|
|
|
|
|
|
|
|
|
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Agency |
|
38,673 |
71.0 |
|
35,885 |
69.8 |
|
71,484 |
70.9 |
|
62,744 |
68.5 |
|
|
|
|
|
|
|
|
|
|
||||
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Total |
$ |
54,496 |
100.0 |
$ |
51,416 |
100.0 |
$ |
100,841 |
100.0 |
$ |
91,596 |
100.0 |
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Investors Title Company and Subsidiaries |
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Management uses various financial and operational measurements, including financial information not prepared in accordance with generally accepted accounting principles (“GAAP”), to analyze Company performance. This includes adjusting revenues to remove the impact of net investment gains and losses, which are recognized in net income under GAAP. Net investment gains and losses include realized gains and losses on sales of investment securities and changes in the estimated fair value of equity security investments. Management believes that these measures are useful to evaluate the Company’s internal operational performance from period to period because they eliminate the effects of external market fluctuations. The Company also believes users of the financial results would benefit from having access to such information, and that certain of the Company’s peers make available similar information. This information should not be used as a substitute for, or considered superior to, measures of financial performance prepared in accordance with GAAP, and may be different from similarly titled non-GAAP financial measures used by other companies. |
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The following tables reconcile non-GAAP financial measurements used by Company management to the comparable measurements using GAAP: |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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|
|
2025 |
|
|
|
2024 |
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|
|
2025 |
|
|
|
2024 |
|
|
|
|
|
|
|
|
|
|||||||||
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Revenues |
|
|
|
|
|
|
|||||||||
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Total revenues (GAAP) |
$ |
73,649 |
|
|
$ |
65,382 |
|
$ |
130,214 |
|
|
$ |
118,841 |
|
|
|
Subtract: Net investment gains |
|
(2,104 |
) |
|
|
(1,242 |
) |
|
(925 |
) |
|
|
(3,664 |
) |
|
|
Adjusted revenues (non-GAAP) |
$ |
71,545 |
|
|
$ |
64,140 |
|
$ |
129,289 |
|
|
$ |
115,177 |
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Income before Income Taxes |
|
|
|
|
|
|
|||||||||
|
Income before income taxes (GAAP) |
$ |
15,798 |
|
|
$ |
11,267 |
|
$ |
19,851 |
|
|
$ |
17,064 |
|
|
|
Subtract: Net investment gains |
|
(2,104 |
) |
|
|
(1,242 |
) |
|
(925 |
) |
|
|
(3,664 |
) |
|
|
Adjusted income before income taxes (non-GAAP) |
$ |
13,694 |
|
|
$ |
10,025 |
|
$ |
18,926 |
|
|
$ |
13,400 |
|
|
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