Investors Title Company Announces Second Quarter 2024 Results
Investors Title Company (Nasdaq: ITIC) reported strong Q2 2024 results, with net income increasing 17.0% to $8.9 million ($4.70 per diluted share) compared to $7.6 million ($4.00 per diluted share) in Q2 2023. Revenues rose 12.1% to $65.4 million, driven by higher premiums from increased market activity and rising home prices. Operating expenses grew 11.7%, mainly due to higher agent commissions. For H1 2024, net income jumped to $13.4 million ($7.10 per diluted share) from $8.8 million ($4.62 per diluted share) in H1 2023. The company noted improved real estate market conditions, with declining mortgage rates and increased home inventories potentially signaling a positive outlook for the sector.
Investors Title Company (Nasdaq: ITIC) ha riportato risultati forti per il secondo trimestre del 2024, con un reddito netto in aumento del 17,0% a $8,9 milioni ($4,70 per azione diluita) rispetto a $7,6 milioni ($4,00 per azione diluita) nel secondo trimestre del 2023. I ricavi sono aumentati del 12,1% a $65,4 milioni, trainati da premi più elevati grazie a un'attività di mercato aumentata e all'aumento dei prezzi delle case. Le spese operative sono cresciute dell'11,7%, principalmente a causa di commissioni più alte per gli agenti. Per il primo semestre del 2024, il reddito netto è balzato a $13,4 milioni ($7,10 per azione diluita) rispetto a $8,8 milioni ($4,62 per azione diluita) nel primo semestre del 2023. L'azienda ha osservato un miglioramento delle condizioni del mercato immobiliare, con un calo dei tassi ipotecari e un aumento delle giacenze di case che potrebbero segnalare una prospettiva positiva per il settore.
Investors Title Company (Nasdaq: ITIC) reportó resultados sólidos para el segundo trimestre de 2024, con un ingreso neto que aumentó un 17,0% a $8,9 millones ($4,70 por acción diluida) en comparación con $7,6 millones ($4,00 por acción diluida) en el segundo trimestre de 2023. Los ingresos aumentaron un 12,1% a $65,4 millones, impulsados por primas más altas debido a una mayor actividad en el mercado y al aumento de los precios de las viviendas. Los gastos operativos crecieron un 11,7%, principalmente por comisiones más altas para los agentes. Para el primer semestre de 2024, el ingreso neto saltó a $13,4 millones ($7,10 por acción diluida) desde $8,8 millones ($4,62 por acción diluida) en el primer semestre de 2023. La empresa observó una mejora en las condiciones del mercado inmobiliario, con la disminución de las tasas hipotecarias y un aumento en los inventarios de viviendas que podrían señalar una perspectiva positiva para el sector.
Investors Title Company (Nasdaq: ITIC)는 2024년 2분기에 강력한 실적을 발표했으며, 순이익이 17.0% 증가하여 $8.9백만($4.70 per diluted share)에 달했고, 이는 2023년 2분기 $7.6백만($4.00 per diluted share)과 비교됩니다. 매출은 12.1% 증가하여 $65.4백만에 이르렀으며, 이는 시장 활동 증가와 주택 가격 상승에 따른 프리미엄 증가에 의해 촉진되었습니다. 운영비용은 주로 에이전트 수수료 증가로 인해 11.7% 증가했습니다. 2024년 상반기에는 순이익이 $13.4백만($7.10 per diluted share)으로 증가했으며, 이는 2023년 상반기의 $8.8백만($4.62 per diluted share)에서 증가한 것입니다. 회사는 모기지 금리 하락과 주택 재고 증가로 인해 부동산 시장의 개선된 조건을 보고하며, 이는 이 부문의 긍정적인 전망을 시사할 수 있습니다.
Investors Title Company (Nasdaq: ITIC) a annoncé des résultats solides pour le deuxième trimestre 2024, avec un revenu net en hausse de 17,0% à 8,9 millions de dollars (4,70 dollars par action diluée) par rapport à 7,6 millions de dollars (4,00 dollars par action diluée) au deuxième trimestre 2023. Les revenus ont augmenté de 12,1% pour atteindre 65,4 millions de dollars, soutenus par des primes plus élevées dues à une activité accrue sur le marché et à la hausse des prix des logements. Les dépenses d'exploitation ont augmenté de 11,7%, principalement en raison de commissions plus élevées pour les agents. Pour le premier semestre 2024, le revenu net a bondi à 13,4 millions de dollars (7,10 dollars par action diluée) contre 8,8 millions de dollars (4,62 dollars par action diluée) au premier semestre 2023. L'entreprise a noté une amélioration des conditions du marché immobilier, avec des taux d'intérêt hypothécaires en baisse et une augmentation des stocks de logements, ce qui pourrait signaler une perspective positive pour le secteur.
Investors Title Company (Nasdaq: ITIC) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, mit einem Nettogewinn von 17,0%, der auf 8,9 Millionen Dollar (4,70 Dollar pro verwässerter Aktie) stieg, im Vergleich zu 7,6 Millionen Dollar (4,00 Dollar pro verwässerter Aktie) im zweiten Quartal 2023. Die Einnahmen stiegen um 12,1% auf 65,4 Millionen Dollar, was durch höhere Prämien aufgrund einer erhöhten Marktaktivität und steigender Immobilienpreise getrieben wurde. Die Betriebskosten stiegen um 11,7%, hauptsächlich wegen höherer Provisionen für Agenten. Für das erste Halbjahr 2024 sprang der Nettogewinn auf 13,4 Millionen Dollar (7,10 Dollar pro verwässerter Aktie) von 8,8 Millionen Dollar (4,62 Dollar pro verwässerter Aktie) im ersten Halbjahr 2023. Das Unternehmen vermerkte verbesserte Bedingungen auf dem Immobilienmarkt, mit fallenden Hypothekenzinsen und gestiegenen Immobilienbeständen, was möglicherweise eine positive Perspektive für den Sektor signalisiert.
- Net income increased 17.0% year-over-year to $8.9 million in Q2 2024
- Revenues grew 12.1% to $65.4 million in Q2 2024
- Diluted EPS rose to $4.70 in Q2 2024 from $4.00 in Q2 2023
- H1 2024 net income increased by $4.6 million to $13.4 million
- Profit margins reached pre-pandemic levels
- Premiums written increased due to higher activity levels and higher average real estate sales prices
- Expenses improved due to ongoing expense management efforts
- Operating expenses increased 11.7% year-over-year in Q2 2024
- Personnel expenses decreased due to lower staffing levels
Insights
Investors Title Company's Q2 2024 results show strong performance, with net income increasing 17.0% to
- Revenue up
12.1% to$65.4 million , driven by higher premiums from increased market activity and rising home prices - Operating expenses up
11.7% , mainly due to higher agent commissions - Adjusted income before taxes (non-GAAP) increased to
$10.0 million from$8.8 million
The company's improved profitability, despite higher operating expenses, suggests effective cost management and a favorable claims environment. The declining mortgage rates and increasing housing inventory could potentially stimulate further growth in the real estate market, benefiting Investors Title Company's core business.
The Q2 2024 results for Investors Title Company reflect a recovering real estate market. Key observations:
- Higher premiums written indicate increased real estate transaction activity
- Rising average home prices contributing to revenue growth
- Mortgage rates declined over
1% from Q4 2023 peak - Substantial increase in housing inventory since the start of 2024
These trends suggest a potential market rebalancing. Lower mortgage rates could stimulate demand, while increased inventory may ease supply constraints. If sustained, these conditions could lead to a more robust real estate market, potentially driving further growth for title insurance providers. However, it's important to monitor how these factors interact with broader economic conditions and consumer sentiment in the coming quarters.
Revenues increased
Operating expenses increased
Income before income taxes increased to
For the six months ended June 30, 2024, net income increased
Chairman J. Allen Fine commented, “We are pleased to report a
"Real estate sales activity in the market improved during the quarter on a seasonal basis and relative to the prior year period. By quarter end, mortgage rates had declined over a full percentage point from their peak in the fourth quarter of 2023, and inventories of homes available for sale had increased substantially since the beginning of the year. If such trends persist, they may bring about an overall improvement to conditions in the real estate market."
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 this year, 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, enhancing competitive strengths, 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; government regulations; 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, 2023 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, 2024 and 2023 |
|||||||||||
(in thousands, except per share amounts) |
|||||||||||
(unaudited) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Revenues: |
|
|
|
|
|
|
|
||||
Net premiums written |
$ |
51,416 |
|
$ |
44,005 |
|
$ |
91,596 |
|
$ |
82,971 |
Escrow and other title-related fees |
|
4,801 |
|
|
4,604 |
|
|
8,524 |
|
|
8,259 |
Non-title services |
|
4,304 |
|
|
4,565 |
|
|
8,608 |
|
|
9,877 |
Interest and dividends |
|
2,568 |
|
|
2,150 |
|
|
5,088 |
|
|
4,224 |
Other investment income |
|
890 |
|
|
1,648 |
|
|
1,001 |
|
|
2,401 |
Net investment gains |
|
1,242 |
|
|
1,092 |
|
|
3,664 |
|
|
1,535 |
Other |
|
161 |
|
|
250 |
|
|
360 |
|
|
390 |
Total Revenues |
|
65,382 |
|
|
58,314 |
|
|
118,841 |
|
|
109,657 |
|
|
|
|
|
|
|
|
||||
Operating Expenses: |
|
|
|
|
|
|
|
||||
Commissions to agents |
|
26,550 |
|
|
20,603 |
|
|
46,420 |
|
|
39,929 |
Provision for claims |
|
905 |
|
|
991 |
|
|
1,815 |
|
|
2,059 |
Personnel expenses |
|
18,154 |
|
|
18,548 |
|
|
36,736 |
|
|
39,368 |
Office and technology expenses |
|
4,308 |
|
|
4,513 |
|
|
8,773 |
|
|
8,913 |
Other expenses |
|
4,198 |
|
|
3,813 |
|
|
8,033 |
|
|
7,981 |
Total Operating Expenses |
|
54,115 |
|
|
48,468 |
|
|
101,777 |
|
|
98,250 |
|
|
|
|
|
|
|
|
||||
Income before Income Taxes |
|
11,267 |
|
|
9,846 |
|
|
17,064 |
|
|
11,407 |
|
|
|
|
|
|
|
|
||||
Provision for Income Taxes |
|
2,396 |
|
|
2,261 |
|
|
3,668 |
|
|
2,641 |
|
|
|
|
|
|
|
|
||||
Net Income |
$ |
8,871 |
|
$ |
7,585 |
|
$ |
13,396 |
|
$ |
8,766 |
|
|
|
|
|
|
|
|
||||
Basic Earnings per Common Share |
$ |
4.71 |
|
$ |
4.00 |
|
$ |
7.10 |
|
$ |
4.62 |
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding – Basic |
|
1,884 |
|
|
1,895 |
|
|
1,886 |
|
|
1,896 |
|
|
|
|
|
|
|
|
||||
Diluted Earnings per Common Share |
$ |
4.70 |
|
$ |
4.00 |
|
$ |
7.10 |
|
$ |
4.62 |
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding – Diluted |
|
1,886 |
|
|
1,896 |
|
|
1,887 |
|
|
1,896 |
Investors Title Company and Subsidiaries |
|||||
Consolidated Balance Sheets |
|||||
As of June 30, 2024 and December 31, 2023 |
|||||
(in thousands) |
|||||
(unaudited) |
|||||
|
June 30,
|
|
December 31,
|
||
Assets |
|
|
|
||
|
|
|
|
||
Cash and cash equivalents |
$ |
26,686 |
|
$ |
24,031 |
|
|
|
|
||
Investments: |
|
|
|
||
Fixed maturity securities, available-for-sale, at fair value |
|
93,479 |
|
|
63,847 |
Equity securities, at fair value |
|
36,837 |
|
|
37,212 |
Short-term investments |
|
84,480 |
|
|
110,224 |
Other investments |
|
21,670 |
|
|
17,385 |
Total investments |
|
236,466 |
|
|
228,668 |
|
|
|
|
||
Premiums and fees receivable |
|
13,478 |
|
|
13,338 |
Accrued interest and dividends |
|
1,321 |
|
|
978 |
Prepaid expenses and other receivables |
|
10,829 |
|
|
13,525 |
Property, net |
|
26,516 |
|
|
23,886 |
Goodwill and other intangible assets, net |
|
15,630 |
|
|
16,249 |
Lease assets |
|
6,205 |
|
|
6,303 |
Other assets |
|
2,643 |
|
|
2,500 |
Current income taxes recoverable |
|
558 |
|
|
1,081 |
Total Assets |
$ |
340,332 |
|
$ |
330,559 |
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
||
|
|
|
|
||
Liabilities: |
|
|
|
||
Reserve for claims |
$ |
37,204 |
|
$ |
37,147 |
Accounts payable and accrued liabilities |
|
31,469 |
|
|
31,864 |
Lease liabilities |
|
6,427 |
|
|
6,449 |
Deferred income taxes, net |
|
3,416 |
|
|
3,546 |
Total liabilities |
|
78,516 |
|
|
79,006 |
|
|
|
|
||
Stockholders’ Equity: |
|
|
|
||
Common stock – no par value (10,000 authorized shares; 1,884 and 1,891 shares issued
|
|
— |
|
|
— |
Retained earnings |
|
261,648 |
|
|
250,915 |
Accumulated other comprehensive income |
|
168 |
|
|
638 |
Total stockholders’ equity |
|
261,816 |
|
|
251,553 |
Total Liabilities and Stockholders’ Equity |
$ |
340,332 |
|
$ |
330,559 |
Investors Title Company and Subsidiaries |
||||||||||||
Direct and Agency Net Premiums Written |
||||||||||||
For the Three and Six Months Ended June 30, 2024 and 2023 |
||||||||||||
(in thousands) |
||||||||||||
(unaudited) |
||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||
|
|
2024 |
% |
|
2023 |
% |
|
2024 |
% |
|
2023 |
% |
Direct |
$ |
15,531 |
30.2 |
$ |
15,776 |
35.9 |
$ |
28,852 |
31.5 |
$ |
28,490 |
34.3 |
|
|
|
|
|
|
|
|
|
||||
Agency |
|
35,885 |
69.8 |
|
28,229 |
64.1 |
|
62,744 |
68.5 |
|
54,481 |
65.7 |
|
|
|
|
|
|
|
|
|
||||
Total |
$ |
51,416 |
100.0 |
$ |
44,005 |
100.0 |
$ |
91,596 |
100.0 |
$ |
82,971 |
100.0 |
Investors Title Company and Subsidiaries
Appendix A
Non-GAAP Measures Reconciliation
For the Three and Six Months Ended June 30, 2024 and 2023
(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
|
Six Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
||||||||
Revenues |
|
|
|
|
|
|
||||||||
Total revenues (GAAP) |
$ |
65,382 |
|
|
$ |
58,314 |
|
$ |
118,841 |
|
|
$ |
109,657 |
|
Subtract: Net investment gains |
|
(1,242 |
) |
|
|
(1,092 |
) |
|
(3,664 |
) |
|
|
(1,535 |
) |
Adjusted revenues (non-GAAP) |
$ |
64,140 |
|
|
$ |
57,222 |
|
$ |
115,177 |
|
|
$ |
108,122 |
|
|
|
|
|
|
|
|
||||||||
Income before Income Taxes |
|
|
|
|
|
|
||||||||
Income before income taxes (GAAP) |
$ |
11,267 |
|
|
$ |
9,846 |
|
$ |
17,064 |
|
|
$ |
11,407 |
|
Subtract: Net investment gains |
|
(1,242 |
) |
|
|
(1,092 |
) |
|
(3,664 |
) |
|
|
(1,535 |
) |
Adjusted income before income taxes (non-GAAP) |
$ |
10,025 |
|
|
$ |
8,754 |
|
$ |
13,400 |
|
|
$ |
9,872 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805438678/en/
Elizabeth B. Lewter
(919) 968-2200
Source: Investors Title Company
FAQ
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