Investors Title Company Announces Third Quarter 2006 Results
|November 2, 2006|
CHAPEL HILL, N.C.-- J. Allen Fine, Chairman of Investors Title Company (NASDAQ:ITIC), announced that for the third quarter ended September 30, 2006, the Company reported net income of $3,672,069, a decrease of 15.2% compared with $4,329,529 for the prior year period. Net income per diluted share equaled $1.44, a decrease of 13.8% compared with $1.67 per diluted share in the same period last year. Net premiums written decreased 13.1% to $18,242,676 and revenues decreased 9.6% to $21,722,334 compared with the prior year period.
For the nine-month period ended September 30, 2006, the Company reported net income of $10,862,547, an increase of 11.2%, compared with $9,772,021 for the same nine-month period in 2005. Diluted earnings per share were $4.23, an increase of 13.1% compared with $3.74 for the same nine-month period in 2005. Net premiums written decreased 7.1% to $53,997,893 and revenues decreased 1.8% to $65,027,803 compared with the prior year.
Premiums written declined during the latest reporting period as mortgage originations and real estate activity continued to slow from the record levels of the prior year. Slowing real estate sales also led to a decline in tax-deferred exchange volume. Revenue in the exchange segment increased due to higher rates of interest earned on funds. Also slightly offsetting the decline in premium revenue was an increase in investment income.
Chairman Fine added "As generally expected, transaction volume and mortgage loan origination has continued to slow as a result of higher interest rates, inventory imbalances and other market factors. We continue to monitor conditions in the real estate market in order to best align expenditures with changing activity levels, while looking for opportunities to extend our distribution base and further improve operating efficiencies."
Source: Investors Title Company