Document
INVESTORS TITLE COMPANY ANNOUNCES
SECOND QUARTER 2026 RESULTS
Contact: Elizabeth B. Lewter
August 6, 2026
Telephone: (919) 968-2200
Nasdaq Symbol: ITIC
FOR IMMEDIATE RELEASE:
Chapel Hill, NC – 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.
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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)
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Three Months Ended
June 30, |
Six Months Ended
June 30, |
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2026 |
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2025 |
2026 |
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2025 |
| Revenues: |
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Net premiums written |
$ |
67,542
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$ |
54,496 |
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$ |
118,488
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$ |
100,841 |
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Escrow and other title-related fees |
5,968
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5,694 |
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11,008
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9,586 |
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Non-title services |
5,105
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5,477 |
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9,474
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10,086 |
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Interest and dividends |
2,272
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2,361 |
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4,560
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4,700 |
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| Other investment income |
667
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609 |
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1,331
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1,019 |
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| Net investment gains |
4,795
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2,104 |
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5,319
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925 |
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Other |
154
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2,908 |
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336
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3,057 |
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| Total Revenues |
86,503
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73,649 |
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150,516
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130,214 |
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| Operating Expenses: |
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Commissions to agents |
35,644
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29,077 |
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63,096
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53,934 |
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| Provision for claims |
2,783
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2,080 |
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3,255
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2,403 |
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Personnel expenses |
19,043
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17,460 |
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38,069
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35,794 |
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Office and technology expenses |
4,666
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4,327 |
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9,176
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8,867 |
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Other expenses |
4,921
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4,907 |
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9,759
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9,365 |
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| Total Operating Expenses |
67,057
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57,851 |
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123,355
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110,363 |
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| Income before Income Taxes |
19,446
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15,798 |
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27,161
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19,851 |
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| Provision for Income Taxes |
4,813
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3,520 |
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6,461
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4,402 |
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| Net Income |
$ |
14,633
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$ |
12,278 |
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$ |
20,700
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$ |
15,449 |
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| Basic Earnings per Common Share |
$ |
7.75
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$ |
6.51 |
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$ |
10.96
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$ |
8.19 |
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| Weighted Average Shares Outstanding – Basic |
1,888
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1,887 |
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1,888
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1,886 |
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| Diluted Earnings per Common Share |
$ |
7.73
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$ |
6.48 |
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$ |
10.93
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$ |
8.16 |
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| Weighted Average Shares Outstanding – Diluted |
1,894
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1,894 |
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1,894
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1,894 |
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Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2026 and December 31, 2025
(in thousands)
(unaudited)
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June 30,
2026 |
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December 31,
2025 |
| Assets |
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| Cash and cash equivalents |
$ |
20,464
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$ |
20,838 |
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| Investments: |
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Fixed maturity securities, available-for-sale, at fair value |
130,515
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118,116 |
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Equity securities, at fair value |
51,295
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41,481 |
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Short-term investments |
51,726
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68,763 |
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Other investments |
29,825
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23,446 |
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Total investments |
263,361
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251,806 |
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Premiums and fees receivable |
19,401
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17,126 |
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| Accrued interest and dividends |
1,634
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1,476 |
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| Prepaid expenses and other receivables |
9,482
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9,387 |
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| Property, net |
30,551
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29,397 |
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| Goodwill and other intangible assets, net |
21,358
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20,940 |
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| Lease assets |
8,355
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7,784 |
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| Other assets |
2,758
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2,706 |
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| Current income taxes recoverable |
2,761
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1,678 |
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Total Assets |
$ |
380,125
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$ |
363,138 |
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| Liabilities and Stockholders’ Equity |
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| Liabilities: |
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| Reserve for claims |
$ |
39,102
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$ |
38,092 |
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| Accounts payable and accrued liabilities |
38,303
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41,525 |
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| Lease liabilities |
8,717
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8,050 |
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| Deferred income taxes, net |
7,432
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7,171 |
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Total liabilities |
93,554
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94,838 |
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| Stockholders’ Equity: |
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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)
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— |
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Retained earnings |
286,409
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267,209 |
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| Accumulated other comprehensive income |
162
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1,091 |
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Total stockholders’ equity |
286,571
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268,300 |
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Total Liabilities and Stockholders’ Equity |
$ |
380,125
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$ |
363,138 |
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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)
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
% |
2025 |
% |
| Direct |
$ |
19,750
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29.2 |
$ |
15,823 |
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29.0 |
$ |
33,973
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28.7 |
$ |
29,357 |
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29.1 |
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| Agency |
47,792
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70.8 |
38,673 |
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71.0 |
84,515
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71.3 |
71,484 |
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70.9 |
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| Total |
$ |
67,542
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100.0 |
$ |
54,496 |
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100.0 |
$ |
118,488
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100.0 |
$ |
100,841 |
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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:
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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| Revenues |
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| Total revenues (GAAP) |
$ |
86,503
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$ |
73,649 |
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$ |
150,516
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$ |
130,214 |
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| Subtract: Net investment gains |
(4,795) |
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(2,104) |
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(5,319) |
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(925) |
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| Adjusted revenues (non-GAAP) |
$ |
81,708
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$ |
71,545 |
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$ |
145,197
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$ |
129,289 |
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| Income before Income Taxes |
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Income before income taxes (GAAP) |
$ |
19,446
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$ |
15,798 |
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$ |
27,161
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$ |
19,851 |
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| Subtract: Net investment gains |
(4,795) |
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(2,104) |
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(5,319) |
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(925) |
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Adjusted income before income taxes (non-GAAP) |
$ |
14,651
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$ |
13,694 |
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$ |
21,842
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$ |
18,926 |
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