Investors Title Company Announces First Quarter 2026 Results

Published: 2026-05-07 08:30:05 ET ITIC

Published on 05/07/2026 at 08:30 am EDT

Investors Title Company (Nasdaq: ITIC) today announced results for the first quarter ended March 31, 2026. The Company reported net income of $6.1 million, or $3.20 per diluted share, compared to $3.2 million, or $1.67 per diluted share, for the prior year period.

Revenues increased 13.2% to $64.0 million, compared to $56.6 million in the prior year period. Net premiums written and escrow and title-related fees increased by $5.7 million, resulting from higher real estate activity levels and ongoing expansion initiatives. Revenues were positively impacted by a $1.7 million improvement in net investments gains (losses), primarily driven by favorable changes in the estimated fair value of equity security investments compared to the same period last year.

Operating expenses increased 7.2% to $56.3 million, compared to $52.5 million in the prior year period. The increase in operating expenses was largely driven by higher agent commissions, reflecting growth in agent business. Other categories of operating expenses were generally consistent with the prior-year period.

Income before income taxes increased to $7.7 million for the current year quarter, versus $4.1 million in the prior year period. Excluding the impact of net investment gains (losses), adjusted income before income taxes (non-GAAP) increased to $7.2 million for the current year quarter, versus $5.2 million in the prior year period (see Appendix A for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure).

Chairman J. Allen Fine commented, "We are pleased with our strong start to 2026, highlighted by solid revenue growth and improved profitability, marking our best first quarter since 2022. These results reflect both increased real estate activity and the continued success of our expansion initiatives. We remain focused on disciplined growth, supporting our agents, and delivering long-term value to our shareholders."

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 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, 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 Months Ended March 31, 2026 and 2025 (in thousands, except per share amounts) (unaudited)

Three Months Ended

March 31,

2026

2025

Revenues:

Net premiums written

$

50,946

$

46,345

Escrow and other title-related fees

5,040

3,892

Non-title services

4,369

4,609

Interest and dividends

2,288

2,339

Other investment income

664

410

Net investment gains (losses)

524

(1,179

)

Other

182

149

Total Revenues

64,013

56,565

Operating Expenses:

Commissions to agents

27,452

24,857

Provision for claims

472

323

Personnel expenses

19,026

18,334

Office and technology expenses

4,510

4,540

Other expenses

4,838

4,458

Total Operating Expenses

56,298

52,512

Income before Income Taxes

7,715

4,053

Provision for Income Taxes

1,648

882

Net Income

$

6,067

$

3,171

Basic Earnings per Common Share

$

3.21

$

1.68

Weighted Average Shares Outstanding – Basic

1,888

1,886

Diluted Earnings per Common Share

$

3.20

$

1.67

Weighted Average Shares Outstanding – Diluted

1,894

1,895

Investors Title Company and Subsidiaries Consolidated Balance Sheets As of March 31, 2026 and December 31, 2025 (in thousands) (unaudited)

March 31,

2026

December 31,

2025

Assets

Cash and cash equivalents

$

26,703

$

20,838

Investments:

Fixed maturity securities, available-for-sale, at fair value

117,337

118,116

Equity securities, at fair value

46,361

41,481

Short-term investments

58,437

68,763

Other investments

22,605

23,446

Total investments

244,740

251,806

Premiums and fees receivable

17,495

17,126

Accrued interest and dividends

1,605

1,476

Prepaid expenses and other receivables

9,432

9,387

Property, net

29,569

29,397

Goodwill and other intangible assets, net

20,879

20,940

Lease assets

8,392

7,784

Other assets

2,729

2,706

Current income taxes recoverable

—

1,678

Total Assets

$

361,544

$

363,138

Liabilities and Stockholders’ Equity

Liabilities:

Reserve for claims

$

37,894

$

38,092

Accounts payable and accrued liabilities

35,128

41,525

Lease liabilities

8,691

8,050

Current income taxes payable

660

—

Deferred income taxes, net

6,281

7,171

Total liabilities

88,654

94,838

Stockholders’ Equity:

Common stock – no par value (10,000 authorized shares; 1,888 and 1,888 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively, excluding in each period 292 shares of common stock held by the Company's subsidiary)

—

—

Retained earnings

272,527

267,209

Accumulated other comprehensive income

363

1,091

Total stockholders’ equity

272,890

268,300

Total Liabilities and Stockholders’ Equity

$

361,544

$

363,138

Investors Title Company and Subsidiaries Direct and Agency Net Premiums Written For the Three Months Ended March 31, 2026 and 2025 (in thousands) (unaudited)

Three Months Ended March 31,

2026

%

2025

%

Direct

$

14,223

27.9

$

13,534

29.2

Agency

36,723

72.1

32,811

70.8

Total

$

50,946

100.0

$

46,345

100.0

Investors Title Company and Subsidiaries Appendix A Non-GAAP Measures Reconciliation For the Three Months Ended March 31, 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:

Three Months Ended

March 31,

2026

2025

Revenues

Total revenues (GAAP)

$

64,013

$

56,565

(Subtract) Add: Net investment (gains) losses

(524

)

1,179

Adjusted revenues (non-GAAP)

$

63,489

$

57,744

Income before Income Taxes

Income before income taxes (GAAP)

$

7,715

$

4,053

(Subtract) Add: Net investment (gains) losses

(524

)

1,179

Adjusted income before income taxes (non-GAAP)

$

7,191

$

5,232

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