CHAPEL HILL, N.C., Oct 30, 2009 (BUSINESS WIRE) ----J. Allen Fine, Chairman of Investors Title Company, announced that for the third quarter ended September 30, 2009, the Company reported net income of $969,043, an increase of 5.7% compared with net income of $917,033 for the same three-month period in 2008. Net income per diluted share equaled $0.42 compared with net income per diluted share of $0.39 in the same period last year. Net premiums written decreased 6.8% to $14,282,615, investment income decreased 15.5% to $911,982 and total revenues decreased 7.0% to $16,362,617 compared with the prior year period.

For the nine-month period ended September 30, 2009, the Company reported net income of $4,519,479, an increase of 63.3%, compared with $2,767,479 for the same nine-month period in 2008. Diluted earnings per share were $1.96, an increase of 70.4% compared with $1.15 for the same nine-month period in 2008. Net premiums written decreased 3.3% to $49,604,823, investment income decreased 17.6% to $2,862,071 and total revenues decreased 3.6% to $56,665,585 compared with the prior year period. Operating results for the quarter ended September 30, 2009 showed improvement over the same period in 2008 primarily due to cost containment efforts and a reduction in payroll expenses. The provision for claims declined slightly from the prior year period but increased as a percentage of premiums written, due in part to the ongoing elevated pace of mortgage foreclosures.

"Premiums written benefited from an increase in the level of purchase transactions as home buyers took advantage of very low mortgage interest rates as well as various government stimulus programs, including a tax credit for first time buyers," Chairman Fine added. "The level of mortgage refinance transactions insured declined from the first and second quarters of the year; however, refinance transactions remain a significant block of business. We continue to search for and work on opportunities to develop our distribution network but remain guarded in expectations for near term transaction volume." 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 and investment management services to individuals, companies, banks and trusts.

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. Such risks and uncertainties include, without limitation: 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; mechanic lien claims; 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, 2008, 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, 2009 and 2008
   (Unaudited)
   Three Months Ended                    Nine Months Ended
   September 30                          September 30
   2009               2008               2009               2008
   Revenues:
   Underwriting income:
   Premiums Written                                     $   14,306,677     $   15,410,424     $   49,662,835     $   51,493,078
   Less-premiums for reinsurance ceded                      24,062             78,604             58,012             219,916
   Net premiums written                                     14,282,615         15,331,820         49,604,823         51,273,162
   Investment income-interest and dividends                 911,982            1,079,760          2,862,071          3,471,800
   Net realized loss on investments                         (110,818   )       (545,883   )       (400,760   )       (669,586
   )
   Exchange services revenue                                175,608            542,528            800,335            1,013,940
   Other                                                    1,103,230          1,188,338          3,799,116          3,720,966
   Total Revenues                                           16,362,617         17,596,563         56,665,585         58,810,282
   Operating Expenses:
   Commissions to agents                                    6,838,090          6,707,688          23,202,041         21,976,896
   Provision for claims                                     1,934,459          1,982,822          6,733,399          8,329,832
   Salaries, employee benefits and payroll taxes            4,195,751          5,253,705          13,862,993         16,063,267
   Office occupancy and operations                          985,769            1,143,219          3,292,491          3,840,407
   Business development                                     336,481            569,404            928,309            1,622,736
   Filing fees and taxes, other than payroll and income     204,819            92,608             547,074            424,112
   Premium and retaliatory taxes                            270,352            210,233            1,013,124          1,029,298
   Professional and contract labor fees                     330,960            383,156            982,948            1,431,826
   Other                                                    173,893            248,695            363,727            762,429
   Total Operating Expenses                                 15,270,574         16,591,530         50,926,106         55,480,803
   Income Before Income Taxes                               1,092,043          1,005,033          5,739,479          3,329,479
   Provision For Income Taxes                               123,000            88,000             1,220,000          562,000
   Net Income                                           $   969,043        $   917,033        $   4,519,479      $   2,767,479
   Basic Earnings Per Common Share                      $   0.42           $   0.39           $   1.97           $   1.16
   Weighted Average Shares Outstanding - Basic              2,290,666          2,342,643          2,293,754          2,388,115
   Diluted Earnings Per Common Share                    $   0.42           $   0.39           $   1.96           $   1.15
   Weighted Average Shares Outstanding - Diluted            2,295,757          2,360,533          2,300,686          2,409,747
   

Investors Title Company and Subsidiaries
   Consolidated
   Balance Sheets
   As of September 30, 2009 and December
   31, 2008
   (Unaudited)
   September 30, 2009    December 31, 2008
   Assets
   Investments in securities:
   Fixed maturities:
   Held-to-maturity, at amortized cost                                  $ 197,509             $ 451,681
   Available-for-sale, at fair value                                      89,334,159            87,708,500
   Equity securities, available-for-sale, at fair value                   11,672,102            9,965,297
   Short-term investments                                                 17,391,875            15,725,513
   Other investments                                                      2,221,506             2,040,962
   Total investments                                                      120,817,151           115,891,953
   Cash and cash equivalents                                              8,817,941             5,155,046
   Premiums and fees receivable, net                                      5,970,676             4,933,797
   Accrued interest and dividends                                         958,506               1,225,070
   Prepaid expenses and other assets                                      4,231,710             3,992,975
   Property acquired in settlement of claims                              285,376               395,734
   Property, net                                                          4,018,601             4,422,318
   Deferred income taxes, net                                             348,367               3,841,295
   Total Assets                                                         $ 145,448,328 $         139,858,188
   Liabilities and Stockholders' Equity
   Liabilities:
   Reserves for claims                                                  $ 39,426,000  $         39,238,000
   Accounts payable and accrued liabilities                               8,551,682             10,762,300
   Total liabilities                                                      47,977,682            50,000,300
   Stockholders' Equity:
   Common stock - no par value (shares authorized 10,000,000; 2,286,222
   and 2,293,268 shares issued and outstanding 2009 and 2008,
   respectively, excluding 291,676 shares for 2009 and 2008 of common
   stock held by the Company's subsidiary)
   1                     1
   Retained earnings                                                      92,372,351            88,248,452
   Accumulated other comprehensive income                                 5,098,294             1,609,435
   Total stockholders' equity                                             97,470,646            89,857,888
   Total Liabilities and Stockholders' Equity                           $ 145,448,328 $         139,858,188
   

Investors Title Company and Subsidiaries
   Net Premiums
   Written By State
   For the Three and Nine Months Ended
   September 30, 2009 and 2008
   (Unaudited)
   Three Months Ended              Nine Months Ended
   September 30                    September 30
   State                 2009                2008            2009            2008
   Illinois              $   478,044     $   429,954     $   2,335,265   $   1,584,507
   Kentucky                  713,474         761,945         2,533,651       2,393,886
   Michigan                  1,123,194       781,939         3,753,889       2,732,501
   New York                  523,629         472,152         2,359,472       1,670,039
   North Carolina            6,000,363       7,305,962       21,857,728      25,022,108
   Pennsylvania              588,988         423,695         2,074,806       1,388,971
   South Carolina            1,690,176       1,962,189       4,222,027       5,878,324
   Tennessee                 610,055         564,210         1,928,614       1,719,884
   Virginia                  1,226,751       1,492,819       3,927,202       4,701,446
   West Virginia             572,892         504,672         1,730,612       1,617,107
   Other                     771,761         709,837         2,931,419       2,686,711
   Direct Premiums       $   14,299,327  $   15,409,374  $   49,654,685  $   51,395,484
   Reinsurance Assumed       7,350           1,050           8,150           97,594
   Reinsurance Ceded         (24,062)        (78,604)        (58,012)        (219,916)
   Net Premiums Written  $   14,282,615  $   15,331,820  $   49,604,823  $   51,273,162
   

Investors Title Company and Subsidiaries
   Net Premiums
   Written By Branch and Agency
   For the Three and Nine
   Months Ended September 30, 2009 and 2008
   (Unaudited)
   Three Months Ended                        Nine Months Ended
   September 30                              September 30
   2009           %     2008           %     2009           %     2008           %
   Branch  $  4,680,845   33    $  5,685,856   37    $  17,380,223  35    $  19,951,977  39
   Agency     9,601,770   67       9,645,964   63       32,224,600  65       31,321,185  61
   Total   $  14,282,615  100   $  15,331,820  100   $  49,604,823  100   $  51,273,162  100
   

SOURCE: Investors Title Company

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

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