EX-99.1 2 a4q25earningsreleaseandfin.htm EX-99.1 Document

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INVESTORS TITLE COMPANY ANNOUNCES
FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS

Contact: Elizabeth B. Lewter
February 17, 2026
Telephone: (919) 968-2200
Nasdaq Symbol: ITIC
FOR IMMEDIATE RELEASE:
Chapel Hill, NC – Investors Title Company (Nasdaq: ITIC) today announced results for the fourth quarter ended December 31, 2025. The Company reported net income of $7.5 million, or $3.97 per diluted share, compared to $8.4 million, or $4.41 per diluted share, for the prior year period.
Revenues decreased 1.6% to $69.5 million, compared to $70.6 million in the prior year period, primarily due to a decline in net premiums written, partially offset by an increase in non-title services revenue. Although activity levels increased over the prior year, reported net premiums written decreased by $2.4 million, largely due to market-driven factors that favorably impacted the prior year accrual for unreported premiums. Non-title services revenue increased $975 thousand, mostly due to higher revenues from like-kind exchanges and title agency management services.
Operating expenses increased 0.2% to $59.9 million, compared to $59.8 million in the prior year period, primarily due to higher personnel costs and other expenses, partially offset by a decline in agent commissions. Personnel expenses rose primarily as a result of increased incentive compensation and contract services costs. Other expenses increased due to professional services charges associated with agency acquisitions and several projects in the current year quarter. Agent commissions decreased commensurate with the decline in agent premium volume. Other categories of operating expenses were generally consistent with the prior-year period.
Income before income taxes decreased to $9.6 million for the current year quarter, versus $10.8 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) decreased to $9.4 million for the current year quarter, versus $10.8 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 twelve months ended December 31, 2025, net income increased $4.1 million to $35.2 million, or $18.57 per diluted share, versus $31.1 million, or $16.43 per diluted share, for the prior year period. Revenues increased 5.6% to $272.8 million, up from $258.3 million for the prior year period. Operating expenses increased 4.3% to $228.2 million, compared to $218.8 million for the prior year period. Income before income taxes increased to $44.5 million for the current year, versus $39.5 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $41.4 million for the current year period, versus $34.8 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).
The increase in revenues for the twelve months ended December 31, 2025 was primarily attributable to higher net premiums written and increased escrow and title-related fees, driven by elevated real estate activity levels, as well as growth in non-title services revenue from like-kind exchanges and management services. Revenues were also positively impacted by a gain recognized on assets contributed to a joint venture in the second quarter of 2025, and by year-to-date variations in investment earnings.
The increase in operating expenses for the twelve months ended December 31, 2025 was largely driven by agent commissions and other expenses which correspond to a higher level of transaction volume, as well as increased professional services fees. These changes were partially offset by effective management of personnel, office, and technology expenses in connection with ongoing cost-management initiatives.
Chairman J. Allen Fine commented, "We are pleased to report strong results for 2025, with the highest level of profits since 2021. Title insurance volumes increased in most of our key markets over the prior year, with a slight improvement in mortgage rates providing modest increases in refinance activity. Additionally, revenues benefitted from ongoing efforts to expand our presence and grow market share.
"Our non-title businesses also performed well. We benefitted from a higher level of like-kind exchange business, as well as the addition of recurring management services revenue streams.
"During the year, we continued to make investments to strengthen our long-term operational efficiency, while controlling total expenses by managing personnel and office expenses. Beyond their impact on 2025 results, we believe these investments will enhance profitability in years to come."
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; a shutdown 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, 2024 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 Twelve Months Ended December 31, 2025 and 2024
(in thousands, except per share amounts)
(unaudited)
 Three Months Ended
December 31,		Twelve Months Ended
December 31,
 2025202420252024
Revenues:
Net premiums written
$55,399 $57,813 $212,642 $204,264 
Escrow and other title-related fees
4,914 4,856 19,311 17,954 
Non-title services
5,255 4,280 21,599 17,193 
Interest and dividends
2,861 2,833 9,965 10,657 
Other investment income 716 604 2,720 2,600 
Net investment gains 195 43 3,177 4,683 
Other
178 199 3,341 947 
Total Revenues69,518 70,628 272,755 258,298 
Operating Expenses:
Commissions to agents
29,514 31,834 113,669 107,343 
Provision for claims995 1,047 4,607 4,530 
Personnel expenses
18,986 17,720 72,215 72,513 
Office and technology expenses
4,159 4,344 17,204 17,505 
Other expenses
6,257 4,872 20,511 16,944 
Total Operating Expenses59,911 59,817 228,206 218,835 
Income before Income Taxes9,607 10,811 44,549 39,463 
Provision for Income Taxes2,090 2,449 9,369 8,390 
Net Income $7,517 $8,362 $35,180 $31,073 
Basic Earnings per Common Share$3.98 $4.44 $18.64 $16.48 
Weighted Average Shares Outstanding – Basic1,888 1,885 1,887 1,885 
Diluted Earnings per Common Share$3.97 $4.41 $18.57 $16.43 
Weighted Average Shares Outstanding – Diluted1,895 1,896 1,895 1,892 


Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and 2024
(in thousands)
(unaudited)
 December 31,
2025		December 31,
2024
Assets  
Cash and cash equivalents$20,838 $24,654 
Investments:  
Fixed maturity securities, available-for-sale, at fair value
118,116 112,972 
Equity securities, at fair value
41,481 39,893 
Short-term investments
68,763 59,101 
Other investments
23,446 20,578 
Total investments
251,806 232,544 
Premiums and fees receivable
17,126 16,054 
Accrued interest and dividends1,476 1,469 
Prepaid expenses and other receivables9,387 7,033 
Property, net29,397 27,935 
Goodwill and other intangible assets, net20,940 15,071 
Lease assets7,784 6,156 
Other assets2,706 2,655 
Current income taxes recoverable1,678 — 
Total Assets
$363,138 $333,571 
Liabilities and Stockholders’ Equity  
Liabilities:  
Reserve for claims$38,092 $37,060 
Accounts payable and accrued liabilities41,525 34,011 
Lease liabilities8,050 6,356 
Current income taxes payable— 276 
Deferred income taxes, net7,171 4,095 
Total liabilities
94,838 81,798 
Stockholders’ Equity: 
Common stock – no par value (10,000 authorized shares; 1,888 and 1,886 shares issued and outstanding as of December 31, 2025 and 2024, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)
— — 
Retained earnings
267,209 251,418 
Accumulated other comprehensive income 1,091 355 
Total stockholders’ equity
268,300 251,773 
Total Liabilities and Stockholders’ Equity
$363,138 $333,571 



Investors Title Company and Subsidiaries
Direct and Agency Net Premiums Written
For the Three and Twelve Months Ended December 31, 2025 and 2024
(in thousands)
(unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2025%2024%2025%2024%
Direct$16,177 29.2$15,507 26.8$61,864 29.1$60,626 29.7
Agency39,222 70.842,306 73.2150,778 70.9143,638 70.3
Total$55,399 100.0$57,813 100.0$212,642 100.0$204,264 100.0








Investors Title Company and Subsidiaries
Appendix A
Non-GAAP Measures Reconciliation
For the Three and Twelve Months Ended December 31, 2025 and 2024
(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
December 31,		Twelve Months Ended
December 31,
2025202420252024
Revenues
Total revenues (GAAP)$69,518 $70,628 $272,755 $258,298 
Subtract: Net investment gains(195)(43)(3,177)(4,683)
Adjusted revenues (non-GAAP)$69,323 $70,585 $269,578 $253,615 
Income before Income Taxes
Income before income taxes (GAAP)
$9,607 $10,811 $44,549 $39,463 
Subtract: Net investment gains(195)(43)(3,177)(4,683)
Adjusted income before income taxes (non-GAAP)
$9,412 $10,768 $41,372 $34,780