Investors Title Company Announces Second Quarter 2026 Results

About this update from Investors Title Company

Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2026. The Company reported net income of $14.6 million, or $7.73 per diluted share, compared to $12.3 million, or $6.48 per diluted share, for the prior year period. Revenues increased 17.5% to $86.5 million, compared to $73.6 million in the prior year period, primarily due to increases in net premiums written, escrow and other title-related fees, and net investment gains, partially offset by a decline in other revenue. Net premiums written and escrow and title-related fees increased by $13.3 million, resulting from higher real estate activity levels and ongoing expansion initiatives. Revenues were positively impacted by a $2.7 million increase in net investment gains, primarily driven by favorable changes in the estimated fair value of equity security investments compared to the same period last year. Other revenue decreased due primarily to non-recurring gains from the prior year. Operating expenses increased 15.9% to $67.1 million, compared to $57.9 million in the prior year period. The increase in operating expenses was largely driven by increases in agent commissions, personnel expenses, and the provision for claims. Agent commissions increased commensurate with the increase in agent premium volume. Personnel expenses rose primarily as a result of increases in staffing levels and incentive compensation. The provision for claims was higher due to the impacts of increased premium volume and changes in actuarially determined loss ratio estimates. Other categories of operating expenses were generally consistent with the prior-year period. Income before income taxes increased to $19.4 million for the current year quarter, versus $15.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $14.7 million for the current year quarter, versus $13.7 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, 2026, net income increased $5.3 million to $20.7 million, or $10.93 per diluted share, versus $15.4 million, or $8.16 per diluted share, for the prior year period. Revenues increased 15.6% to $150.5 million, up from $130.2 million for the prior year period. Operating expenses increased 11.8% to $123.4 million, compared to $110.4 million for the prior year period. Income before income taxes increased to $27.2 million for the current year, versus $19.9 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $21.8 million for the current year period, versus $18.9 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. Chairman J. Allen Fine commented, "We are pleased to report our strongest quarterly financial performance in several years, highlighted by title revenue growth across all of our key markets. Performance during the quarter benefited from both the positive impact of our market expansion initiatives and modestly improving market conditions, which drove increased transaction activity and contributed to growth across our operations. "Enabled by the strength of our balance sheet and financial position, we have continued investing in initiatives to build market share as well as internal efforts to increase capabilities and efficiency. Despite sluggish market conditions, we believe we are well positioned to create long-term shareholder value over the course of a slower phase of the real estate cycle." 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; shutdowns of the federal government; 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, 2025 as filed with the Securities and Exchange Commission, and in subsequent filings. Investors Title Company and Subsidiaries Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands, except per share amounts) (unaudited)     Three Months Ended June 30, Six Months Ended June 30,   2026   2025 2026   2025 Revenues:             Net premiums written $ 67,542   $ 54,496 $ 118,488   $ 100,841 Escrow and other title-related fees   5,968     5,694   11,008     9,586 Non-title services   5,105     5,477   9,474     10,086 Interest and dividends   2,272     2,361   4,560     4,700 Other investment income   667     609   1,331     1,019 Net investment gains   4,795     2,104   5,319     925 Other   154     2,908   336     3,057 Total Revenues   86,503     73,649   150,516   130,214               Operating Expenses:             Commissions to agents   35,644     29,077   63,096     53,934 Provision for claims   2,783     2,080   3,255     2,403 Personnel expenses   19,043     17,460   38,069     35,794 Office and technology expenses   4,666     4,327   9,176     8,867 Other expenses   4,921     4,907   9,759     9,365 Total Operating Expenses   67,057     57,851   123,355     110,363               Income before Income Taxes   19,446     15,798   27,161     19,851               Provision for Income Taxes   4,813     3,520   6,461     4,402               Net Income $ 14,633   $ 12,278 $ 20,700   $ 15,449               Basic Earnings per Common Share $ 7.75   $ 6.51 $ 10.96   $ 8.19               Weighted Average Shares Outstanding – Basic   1,888     1,887   1,888     1,886               Diluted Earnings per Common Share $ 7.73   $ 6.48 $ 10.93   $ 8.16               Weighted Average Shares Outstanding – Diluted   1,894     1,894   1,894     1,894 Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2026 and December 31, 2025 (in thousands) (unaudited)     June 30, 2026   December 31, 2025 Assets               Cash and cash equivalents $ 20,464   $ 20,838         Investments:       Fixed maturity securities, available-for-sale, at fair value   130,515     118,116 Equity securities, at fair value   51,295     41,481 Short-term investments   51,726     68,763 Other investments   29,825     23,446 Total investments   263,361     251,806         Premiums and fees receivable   19,401     17,126 Accrued interest and dividends   1,634     1,476 Prepaid expenses and other receivables   9,482     9,387 Property, net   30,551     29,397 Goodwill and other intangible assets, net   21,358     20,940 Lease assets   8,355     7,784 Other assets   2,758     2,706 Current income taxes recoverable   2,761     1,678 Total Assets $ 380,125   $ 363,138         Liabilities and Stockholders’ Equity               Liabilities:       Reserve for claims $ 39,102   $ 38,092 Accounts payable and accrued liabilities   38,303     41,525 Lease liabilities   8,717     8,050 Deferred income taxes, net   7,432     7,171 Total liabilities   93,554     94,838         Stockholders’ Equity:       Common stock – no par value (10,000 authorized shares; 1,888 and 1,888 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)   —     — Retained earnings   286,409     267,209 Accumulated other comprehensive income   162     1,091 Total stockholders’ equity   286,571     268,300 Total Liabilities and Stockholders’ Equity $ 380,125   $ 363,138 Investors Title Company and Subsidiaries Direct and Agency Net Premiums Written For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands) (unaudited)     Three Months Ended June 30, Six Months Ended June 30,   2026 % 2025 % 2026 % 2025 % Direct $ 19,750 29.2 $ 15,823 29.0 $ 33,973 28.7 $ 29,357 29.1                   Agency   47,792 70.8   38,673 71.0   84,515 71.3   71,484 70.9                   Total $ 67,542 100.0 $ 54,496 100.0 $ 118,488 100.0 $ 100,841 100.0 Investors Title Company and Subsidiaries Appendix A Non-GAAP Measures Reconciliation For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands) (unaudited) 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. The following tables reconcile non-GAAP financial measurements used by Company management to the comparable measurements using GAAP:   Three Months Ended June 30,   Six Months Ended June 30,   2026   2025   2026   2025                 Revenues               Total revenues (GAAP) $ 86,503     $ 73,649     $ 150,516     $ 130,214   Subtract: Net investment gains   (4,795 )     (2,104 )     (5,319 )     (925 ) Adjusted revenues (non-GAAP) $ 81,708     $ 71,545     $ 145,197     $ 129,289                   Income before Income Taxes               Income before income taxes (GAAP) $ 19,446     $ 15,798     $ 27,161     $ 19,851   Subtract: Net investment gains   (4,795 )     (2,104 )     (5,319 )     (925 ) Adjusted income before income taxes (non-GAAP) $ 14,651     $ 13,694     $ 21,842     $ 18,926     View source version on businesswire.com: https://www.businesswire.com/news/home/20260806736791/en/

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