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.
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.
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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:
