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Investors Title Company Announces Second Quarter 2024 Results

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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.

Positive
  • 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
Negative
  • 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 $8.9 million ($4.70 per diluted share). This marks their most profitable quarter in over two years, with margins comparable to pre-pandemic levels. Key highlights include:

  • 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.

CHAPEL HILL, N.C.--(BUSINESS WIRE)-- Investors Title Company (Nasdaq: ITIC) today announced results for the second quarter ended June 30, 2024. The Company reported net income of $8.9 million, or $4.70 per diluted share, compared with $7.6 million, or $4.00 per diluted share, for the prior year period.

Revenues increased 12.1% to $65.4 million, compared to $58.3 million in the prior year period, primarily due to an increase in premiums written stemming from higher activity levels in certain markets and continued increases in average home prices.

Operating expenses increased 11.7% compared to the prior year period, mostly driven by higher agent commissions and other expenses which fluctuate with the level of title-related revenues. Personnel expenses decreased due to lower staffing levels. Other categories of operating expenses were in line with the prior year period.

Income before income taxes increased to $11.3 million for the current year quarter, versus $9.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $10.0 million for the current year quarter, versus $8.8 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, 2024, net income increased $4.6 million to $13.4 million, or $7.10 per diluted share, versus $8.8 million, or $4.62 per diluted share, for the prior year period. Revenues increased 8.4% to $118.8 million, compared with $109.7 million for the prior year period. Operating expenses increased 3.6% to $101.8 million, compared to $98.3 million for the prior year period. Aside from changes in net investment gains, overall results for the year-to-date period have been shaped predominantly by the same factors that affected the second quarter. Positive changes in the estimated fair value of equity security investments resulted in higher net investment gains compared to the prior year period.

Chairman J. Allen Fine commented, “We are pleased to report a 17.0% increase in net income for the second quarter as compared to the prior year period, our most profitable quarter in over two years, with profit margins comparable to pre-pandemic levels. Premiums written increased due to higher activity levels and higher average real estate sales prices. Our expense level continued to improve as a result of ongoing expense management efforts. Expenses in the quarter were also favorably impacted by relatively low claims experience versus historical norms.

"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,
2024

 

December 31,
2023

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
and outstanding as of June 30, 2024 and December 31, 2023, respectively, excluding in
each period 292 shares of common stock held by the Company's subsidiary)

 

 

 

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
June 30,

Six Months Ended
June 30,

 

 

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

 

 

Elizabeth B. Lewter

(919) 968-2200

 

Source: Investors Title Company

FAQ

What was Investors Title Company's net income for Q2 2024?

Investors Title Company (ITIC) reported a net income of $8.9 million for Q2 2024.

How much did Investors Title Company's revenue increase in Q2 2024?

Investors Title Company's revenue increased by 12.1% to $65.4 million in Q2 2024 compared to the prior year period.

What factors contributed to Investors Title Company's revenue growth in Q2 2024?

The revenue growth was primarily due to an increase in premiums written, stemming from higher activity levels in certain markets and continued increases in average home prices.

How did Investors Title Company's operating expenses change in Q2 2024?

Operating expenses increased 11.7% compared to the prior year period, mostly driven by higher agent commissions and other expenses related to title-related revenues.

What was Investors Title Company's earnings per share (EPS) for Q2 2024?

Investors Title Company reported earnings of $4.70 per diluted share for Q2 2024.

Investors Title Co

NASDAQ:ITIC

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Insurance - Specialty
Title Insurance
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United States of America
CHAPEL HILL