Investors Title第二季盈利增19% 淨保費收入升24%

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 UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q 

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 
For the transition period from ___________________  to ___________________

Commission File Number:  0-11774 
 
INVESTORS TITLE COMPANY
(Exact name of registrant as specified in its charter)

North Carolina56-1110199
(State of incorporation)(I.R.S. Employer Identification No.)

                                        
121 North Columbia Street, Chapel Hill, North Carolina 27514 
(Address of principal executive offices)  (Zip Code)

(919) 968-2200 
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, no par valueITICThe Nasdaq Stock Market LLC
Rights to Purchase Series A Junior Participating Preferred StockThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ☒ No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer☐Accelerated filer☒

Non-accelerated filer☐Smaller reporting company☐

Emerging growth company☐

 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 28, 2026, there were 1,887,996 common shares of the registrant outstanding.

INVESTORS TITLE COMPANY
AND SUBSIDIARIES

INDEX
 

PART I.FINANCIAL INFORMATION

Item 1.Financial Statements (unaudited):

Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025
1

Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2026 and 2025
2

Consolidated Statements of Comprehensive Income For the Three and Six Months Ended June 30, 2026 and 2025
3

Consolidated Statements of Stockholders’ Equity For the Three and Six Months Ended June 30, 2026 and 2025
4

Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2026 and 2025
6

Notes to Consolidated Financial Statements
8

Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
26

Item 3.
Quantitative and Qualitative Disclosures About Market Risk
38

Item 4.
Controls and Procedures
38

PART II.OTHER INFORMATION

Item 1.
Legal Proceedings
40

Item 1A.
Risk Factors40

Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
40

Item 3.Defaults Upon Senior Securities40

Item 4.Mine Safety Disclosures40

Item 5.Other Information40

Item 6.
Exhibits
41

SIGNATURE
42

PART I.   FINANCIAL INFORMATION

Item 1.  Financial Statements

Investors Title Company and Subsidiaries
Consolidated Balance Sheets
As of June 30, 2026 and December 31, 2025 
(in thousands)
(unaudited)

June 30,
2026December 31,
2025
Assets
Cash and cash equivalents$20,464 $20,838 
Investments:
Fixed maturity securities, available-for-sale, at fair value (amortized cost: June 30, 2026: $130,458; December 31, 2025: $116,852)
130,515 118,116 
Equity securities, at fair value (cost: June 30, 2026: $34,685; December 31, 2025: $28,575)
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 dividends1,634 1,476 
Prepaid expenses and other receivables9,482 9,387 
Property, net30,551 29,397 
Goodwill and other intangible assets, net21,358 20,940 
Lease assets8,355 7,784 
Other assets2,758 2,706 
Current income taxes recoverable2,761 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 liabilities8,717 8,050 
Deferred income taxes, net
7,432 7,171 
Total liabilities
93,554 94,838 

Commitments and Contingencies— — 

Stockholders’ Equity:
Preferred stock (1,000 authorized shares; no shares issued)
— — 
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)
— — 
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 

Refer to notes to the unaudited Consolidated Financial Statements.
1

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,
2026202520262025
Revenues:
Net premiums written$67,542 $54,496 $118,488 $100,841 
Escrow and other title-related fees5,968 5,694 11,008 9,586 
Non-title services5,105 5,477 9,474 10,086 
Interest and dividends2,272 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 
Other154 2,908 336 3,057 
Total Revenues86,503 73,649 150,516 130,214 

Operating Expenses:
Commissions to agents35,644 29,077 63,096 53,934 
Provision for claims2,783 2,080 3,255 2,403 
Personnel expenses19,043 17,460 38,069 35,794 
Office and technology expenses4,666 4,327 9,176 8,867 
Other expenses4,921 4,907 9,759 9,365 
Total Operating Expenses67,057 57,851 123,355 110,363 

Income before Income Taxes19,446 15,798 27,161 19,851 

Provision for Income Taxes4,813 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 – Basic1,888 1,887 1,888 1,886 

Diluted Earnings per Common Share$7.73 $6.48 $10.93 $8.16 

Weighted Average Shares Outstanding – Diluted1,894 1,894 1,894 1,894 

Refer to notes to the unaudited Consolidated Financial Statements.
2

 Investors Title Company and Subsidiaries
Consolidated Statements of Comprehensive Income
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,
2026202520262025
Net income $14,633 $12,278 $20,700 $15,449 
Other comprehensive (loss) income, before income tax:
Changes in accumulated postretirement benefit obligation adjustment(6)(8)22 63 
Net unrealized (losses) gains on investments arising during the period(256)311 (1,177)536 
Reclassification adjustment for sale of securities included in net income4 (2)(30)(5)
Other comprehensive (loss) income, before income tax(258)301 (1,185)594 
Income tax (benefit) expense related to postretirement health benefits(1)(2)5 13 
Income tax (benefit) expense related to net unrealized (losses) gains on investments arising during the period(56)67 (255)115 
Income tax benefit related to reclassification adjustment for sale of securities included in net income— (1)(6)(1)
Net income tax (benefit) expense on other comprehensive (loss) income(57)64 (256)127 
Other comprehensive (loss) income(201)237 (929)467 
Comprehensive Income $14,432 $12,515 $19,771 $15,916 

Refer to notes to the unaudited Consolidated Financial Statements.
3

Investors Title Company and Subsidiaries
Consolidated Statements of Stockholders’ Equity
For the Three and Six Months Ended June 30, 2026 and 2025 
(in thousands, except per share amounts)
(unaudited)
Common StockRetained
EarningsAccumulated Other Comprehensive Income
Total
Stockholders’
Equity
SharesAmount
Balance, March 31, 2025
1,886 $— $253,827 $585 $254,412 
Net income12,278 12,278 
Dividends paid ($0.46 per share)
(868)(868)
Exercise of stock appreciation rights2 — — 
Share-based compensation expense related to stock appreciation rights118 118 
Changes in accumulated postretirement benefit obligation adjustment(6)(6)
Net unrealized gain on investments243 243 
Balance, June 30, 2025
1,888 $— $265,355 $822 $266,177 

Balance, March 31, 2026
1,888 $— $272,527 $363 $272,890 
Net income14,633 14,633 
Dividends paid ($0.46 per share)
(870)(870)
Share-based compensation expense related to stock appreciation rights
119 119 
Changes in accumulated postretirement benefit obligation adjustment(5)(5)
Net unrealized loss on investments(196)(196)
Balance, June 30, 2026
1,888 $— $286,409 $162 $286,571 

4

Consolidated Statements of Stockholders’ Equity, continued
Common StockRetained
EarningsAccumulated Other Comprehensive IncomeTotal
Stockholders’
Equity
SharesAmount
Balance, December 31, 2024
1,886 $— $251,418 $355 $251,773 
Net income15,449 15,449 
Dividends paid ($0.92 per share)
(1,736)(1,736)
Exercise of stock appreciation rights2 — — 
Share-based compensation expense related to stock appreciation rights224 224 
Changes in accumulated postretirement benefit obligation adjustment50 50 
Net unrealized gain on investments417 417 
Balance, June 30, 2025
1,888 $— $265,355 $822 $266,177 

Balance, December 31, 2025
1,888 $— $267,209 $1,091 $268,300 
Net income20,700 20,700 
Dividends paid ($0.92 per share)
(1,737)(1,737)
Share-based compensation expense related to stock appreciation rights
237 237 
Changes in accumulated postretirement benefit obligation adjustment17 17 
Net unrealized loss on investments(946)(946)
Balance, June 30, 2026
1,888 $— $286,409 $162 $286,571 

Refer to notes to the unaudited Consolidated Financial Statements.
5

Investors Title Company and Subsidiaries
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2026 and 2025 
(in thousands)
(unaudited)

Six Months Ended
June 30,
20262025
Operating Activities
Net income$20,700 $15,449 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation1,747 1,884 
Accretion of investments, net(708)(733)
Amortization of other intangible assets, net571 418 
Share-based compensation expense related to stock appreciation rights237 224 
Net gains on disposals of property(62)(6)
Net investment gains (5,319)(925)
Net gains on sale of other assets— (2,768)
Net earnings from other investments(847)(787)
Provision for claims3,255 2,403 
Provision (benefit) for deferred income taxes517 (426)
Changes in assets and liabilities:
Increase in premium and fees receivable(2,275)(919)
(Increase) decrease in other assets(1,436)1,981 
Increase in lease assets(571)(1,625)
Increase in current income taxes recoverable(1,083)(1,194)
Decrease in accounts payable and accrued liabilities(3,397)(4,157)
Increase in lease liabilities667 1,654 
Decrease in current income taxes payable— (276)
Payments of claims, net of recoveries(2,245)(1,412)
Net cash provided by operating activities9,751 8,785 

Investing Activities
Purchases of fixed maturity securities(33,562)(32,796)
Purchases of equity securities(9,885)(4,900)
Purchases of short-term investments(25,381)(28,510)
Purchases of other investments(7,801)(3,316)
Purchases of other assets— (4,536)
Proceeds from sales and maturities of fixed maturity securities20,799 28,356 
Proceeds from sales of equity securities5,715 11,333 
Proceeds from sales and maturities of short-term investments42,509 27,468 
Proceeds from sales and distributions of other investments and assets2,057 7,304 
Purchases of property(2,918)(2,886)
Proceeds from sales of property79 463 
Net cash used in investing activities(8,388)(2,020)

Financing Activities
Dividends paid(1,737)(1,736)
Net cash used in financing activities(1,737)(1,736)

Net (Decrease) Increase in Cash and Cash Equivalents(374)5,029 
Cash and Cash Equivalents, Beginning of Period20,838 24,654 
Cash and Cash Equivalents, End of Period$20,464 $29,683 

6

Consolidated Statements of Cash Flows, continued
Six Months Ended
June 30,
20262025
Supplemental Disclosures:
Cash Paid During the Year for:
Income tax payments, net$7,027 $6,299 
Non-Cash Investing and Financing Activities:
Non-cash net unrealized loss (gain) on investments, net of deferred tax benefit (expense) of $261 and $(114) for June 30, 2026 and 2025, respectively
$946 $(417)
Adjustments to postretirement benefits obligation, net of deferred tax expense of $(5) and $(13) for June 30, 2026 and 2025, respectively
$(17)$(50)
    

Refer to notes to the unaudited Consolidated Financial Statements.
7

INVESTORS TITLE COMPANY
AND SUBSIDIARIES
Notes to Unaudited Consolidated Financial Statements
June 30, 2026 
(unaudited)

Note 1 – Basis of Presentation and Significant Accounting Policies

Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2025 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies.

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation.

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three- and six-month periods ended June 30, 2026 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2026 or any other interim period.

Use of Estimates and Assumptions – The preparation of the Company’s unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used.

Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements.

Recently Issued Accounting Standards

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The update requires that an entity disclose additional information about specific expense categories. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the effect of this guidance on its financial statement disclosures, however, adoption will not impact its financial position or results of operations.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The update modifies the accounting for internal-use software development costs by eliminating the stage-based model and establishing new capitalization criteria that apply once a project is authorized and funded, and it is probable the software will be completed and used as intended. The new guidance also introduces the concept of significant development uncertainty to help entities determine the appropriate timing of capitalization and integrates prior website development guidance into Accounting Standards Codification (“ASC”) 350-40. The update is effective for annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of adopting this guidance and does not expect the adoption to have a material effect on its financial position or results of operations.

8

Note 2 – Reserve for Claims

Activity in the reserve for claims for the six-month period ended June 30, 2026 and the year ended December 31, 2025 is summarized as follows:

 (in thousands)June 30, 2026December 31, 2025
Balance, beginning of period$38,092 $37,060 
Provision charged to operations3,255 4,607 
Payments of claims, net of recoveries(2,245)(3,575)
Balance, end of period
$39,102 $38,092 

The total reserve for all reported and unreported losses the Company incurred through June 30, 2026 is represented by the reserve for claims on the unaudited Consolidated Balance Sheets. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through June 30, 2026. Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant. 

A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows:

 (in thousands, except percentages)June 30, 2026%December 31, 2025%
Known title claims$2,768 7.1 $3,459 9.1 
IBNR36,334 92.9 34,633 90.9 
Total reserve for claims
$39,102 100.0 $38,092 100.0 

Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated fair value, net of any indebtedness on the property.

Note 3 – Earnings Per Common Share and Share Awards

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are assumed to be exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period.

The following table sets forth the computation of basic and diluted earnings per share for the three- and six-month periods ended June 30:

Three Months Ended
June 30,Six Months Ended
June 30,
(in thousands, except per share amounts)
2026202520262025
Net income $14,633 $12,278 $20,700 $15,449 
Weighted average common shares outstanding – Basic1,888 1,887 1,888 1,886 
Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled)
6 7 6 8 
Weighted average common shares outstanding – Diluted
1,894 1,894 1,894 1,894 
Basic earnings per common share$7.75 $6.51 $10.96 $8.19 
Diluted earnings per common share$7.73 $6.48 $10.93 $8.16 

9

There were 0 and 5 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended June 30, 2026 and 2025, respectively, due to the out-of-the-money status of the related share-based awards. There were 5 thousand potential shares excluded from the computation of diluted earnings per share for both the six-month periods ended June 30, 2026 and 2025, due to the out-of-the-money status of the related share-based awards.

The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company. There is currently one plan with outstanding awards and from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments.

As of June 30, 2026, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. All outstanding SARs vest and are exercisable within five years or less from the date of grant, and all SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.

A summary of share-based award transactions for all share-based award plans follows:

(in thousands, except weighted average exercise price and average remaining contractual term)Number
Of SharesWeighted
Average
Exercise PriceAverage Remaining
Contractual
Term (Years)Aggregate
Intrinsic
Value
Outstanding as of January 1, 2025
28 $154.74 3.90$2,312 
SARs granted5 246.75 
SARs exercised(9)158.04 
Outstanding as of December 31, 202524 $170.67 3.91$2,312 
SARs granted5 238.06 
SARs exercised(2)162.55 
SARs forfeited or expired— — 
Outstanding as of June 30, 202627 $182.28 4.19$2,484 

Exercisable as of June 30, 202622 $177.10 3.86$2,105 

Unvested as of June 30, 20265 $203.28 5.52$379 

During the second quarters of both 2025 and 2026, the Company issued 5 thousand share-settled SARs to directors of the Company. The fair value of each SAR is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average fair values for the SARs issued during 2026 and 2025 were $105.00 and $105.31, respectively, and were estimated using the weighted average assumptions shown in the table below:

20262025
Expected Life in Years7.07.0
Volatility38.3%36.6%
Interest Rate4.4%4.4%
Yield Rate0.8%0.8%

There was approximately $237 thousand and $225 thousand of compensation expense relating to SARs vesting on or before June 30, 2026 and 2025, respectively, included in personnel expenses in the unaudited Consolidated Statements of Operations. As of June 30, 2026, there was $467 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans. 

10

Note 4 – Segment Information

The Company has two reportable segments, title insurance and exchange services. The remaining immaterial segments have been combined into a group called “All Other.” The Company’s chief operating decision makers (“CODMs”) are the Chief Executive Officer; President, Chief Financial Officer, Chief Accounting Officer, and Treasurer; and Executive Vice President and Secretary. The CODMs use financial metrics such as consolidated operating margin and net income to assess financial performance and to make key operating decisions, such as resource allocation and the rate at which the Company invests in growth opportunities.

The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate.

The exchange services segment acts as an intermediary in tax-deferred exchanges of property held for productive use in a trade or business or for investments and serves as exchange accommodation titleholder, holding property for exchangers in reverse exchange transactions.

Provided below is selected financial information about the Company's operations by segment for the periods ended June 30, 2026 and 2025:

Three Months Ended
June 30, 2026 (in thousands)Title
InsuranceExchange
ServicesAll
OtherIntersegment EliminationsTotal
Insurance and other services revenues$78,803 $2,845 $2,976 $(5,855)$78,769 
Net investment income6,816 15 903 — 7,734 
Total revenues85,619 2,860 3,879 (5,855)86,503 
Commissions to agents39,630 — — (3,986)35,644 
Provision for claims2,783 — — — 2,783 
Personnel expenses16,337 634 2,072 — 19,043 
Other9,876 92 1,333 (1,714)9,587 
Operating expenses68,626 726 3,405 (5,700)67,057 
Income before income taxes$16,993 $2,134 $474 $(155)$19,446 
Total assets$267,373 $3,346 $109,406 $— $380,125 

Three Months Ended
June 30, 2025 (in thousands)Title
InsuranceExchange
ServicesAll
OtherIntersegment EliminationsTotal
Insurance and other services revenues$66,682 $3,448 $2,727 $(4,282)$68,575 
Net investment income3,966 85 1,023 — 5,074 
Total revenues70,648 3,533 3,750 (4,282)73,649 
Commissions to agents32,061 — — (2,984)29,077 
Provision for claims2,080 — — — 2,080 
Personnel expenses15,011 596 1,853 — 17,460 
Other8,731 97 1,550 (1,144)9,234 
Operating expenses57,883 693 3,403 (4,128)57,851 
Income before income taxes$12,765 $2,840 $347 $(154)$15,798 
Total assets$236,262 $9,081 $100,481 $— $345,824 

11

Six Months Ended
June 30, 2026 (in thousands)Title
InsuranceExchange
ServicesAll
OtherIntersegment EliminationsTotal
Insurance and other services revenues$137,793 $5,167 $5,722 $(9,376)$139,306 
Net investment income9,343 43 1,824 — 11,210 
Total revenues147,136 5,210 7,546 (9,376)150,516 
Commissions to agents69,803 — — (6,707)63,096 
Provision for claims3,255 — — — 3,255 
Personnel expenses32,708 1,250 4,111 — 38,069 
Other18,660 211 2,423 (2,359)18,935 
Operating expenses124,426 1,461 6,534 (9,066)123,355 
Income before income taxes$22,710 $3,749 $1,012 $(310)$27,161 
Total assets$267,373 $3,346 $109,406 $— $380,125 

Six Months Ended
June 30, 2025 (in thousands)Title
InsuranceExchange
ServicesAll
OtherIntersegment EliminationsTotal
Insurance and other services revenues$120,464 $6,440 $4,753 $(8,087)$123,570 
Net investment income4,806 129 1,709 — 6,644 
Total revenues125,270 6,569 6,462 (8,087)130,214 
Commissions to agents59,739 — — (5,805)53,934 
Provision for claims2,403 — — — 2,403 
Personnel expenses31,107 1,222 3,465 — 35,794 
Other17,509 196 2,501 (1,974)18,232 
Operating expenses110,758 1,418 5,966 (7,779)110,363 
Income before income taxes$14,512 $5,151 $496 $(308)$19,851 
Total assets$236,262 $9,081 $100,481 $— $345,824 

Note 5 – Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $15.8 million and $15.6 million as of June 30, 2026 and December 31, 2025, respectively. The executive employee benefits include health, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the unaudited Consolidated Balance Sheets. The following sets forth the net periodic benefit cost for the executive benefits for the periods ended June 30, 2026 and 2025:

Three Months Ended
June 30,Six Months Ended
June 30,
 (in thousands)2026202520262025
Service cost – benefits earned during the year$— $— $— $— 
Interest cost on the projected benefit obligation12 23 22 24 
Amortization of unrecognized (gain) loss (6)(8)128 (8)
Net periodic benefit cost$6 $15 $150 $16 

12

Note 6 – Investments and Estimated Fair Value

Investments in Fixed Maturity Securities

The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows:

As of June 30, 2026 (in thousands)Amortized
CostGross
Unrealized
GainsGross
Unrealized
LossesEstimated Fair
Value
Fixed maturity securities, available-for-sale, at fair value:
Government obligations$1,804 $— $(19)$1,785 
General obligations of U.S. states, territories and political subdivisions
11,269 72 (53)11,288 
Special revenue issuer obligations of U.S. states, territories and political subdivisions
7,806 29 (15)7,820 
Corporate debt securities109,579 506 (463)109,622 
Total
$130,458 $607 $(550)$130,515 

As of December 31, 2025 (in thousands)Amortized
CostGross
Unrealized
GainsGross
Unrealized
LossesEstimated Fair 
Value
Fixed maturity securities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions
$12,449 $74 $(31)$12,492 
Special revenue issuer obligations of U.S. states, territories and political subdivisions
10,760 47 (10)10,797 
Corporate debt securities93,643 1,236 (52)94,827 
Total
$116,852 $1,357 $(93)$118,116 

The special revenue category for both periods presented includes approximately 20 individual fixed maturity securities with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at June 30, 2026 are as follows:

Available-for-Sale
(in thousands)Amortized
CostEstimated Fair
Value
Due in one year or less$28,976 $29,028 
Due one year through five years75,865 75,778 
Due five years through ten years23,068 22,938 
Due after ten years2,549 2,771 
Total
$130,458 $130,515 

Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties.

13

The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2026 and December 31, 2025:

Less than 12 Months12 Months or LongerTotal
As of June 30, 2026 (in thousands)Estimated
Fair
ValueUnrealized
LossesEstimated
Fair
ValueUnrealized
LossesEstimated
Fair
ValueUnrealized
Losses
Government obligations$1,785 $(19)$— $— $1,785 $(19)
General obligations of U.S. states, territories and political subdivisions4,814 (53)— — 4,814 (53)
Special revenue issuer obligations of U.S. states, territories and political subdivisions
1,349 (11)101 (4)1,450 (15)
Corporate debt securities54,783 (463)— — 54,783 (463)
Total$62,731 $(546)$101 $(4)$62,832 $(550)

Less than 12 Months12 Months or LongerTotal
As of December 31, 2025 (in thousands)Estimated
Fair
ValueUnrealized
LossesEstimated
Fair
ValueUnrealized
LossesEstimated
Fair
ValueUnrealized
Losses
General obligations of U.S. states, territories and political subdivisions$5,924 $(31)$— $— $5,924 $(31)
Special revenue issuer obligations of U.S. states, territories and political subdivisions
1,192 (3)1,260 (7)2,452 (10)
Corporate debt securities
13,659 (52)— — 13,659 (52)
Total$20,775 $(86)$1,260 $(7)$22,035 $(93)

Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. 

Factors considered in determining whether a loss is credit-related include the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 78 and 32 fixed maturity securities had unrealized losses at June 30, 2026 and December 31, 2025, respectively. The Company does not intend to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive income.

Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss. The Company recorded no impairment charges related to fixed maturity securities for the three- and six-month periods ended June 30, 2026, respectively, and no impairment charges for the three- and six-month periods ended June 30, 2025. Expenses related to impairments are recorded in net investment gains in the unaudited Consolidated Statements of Operations when recognized.

Investments in Equity Securities

The cost and estimated fair value of equity securities are as follows:

As of June 30, 2026 (in thousands)
CostEstimated Fair 
Value
Equity securities, at fair value:
Common stocks$34,685 $51,295 
Total
$34,685 $51,295 

14

As of December 31, 2025 (in thousands)
CostEstimated Fair 
Value
Equity securities, at fair value:
Common stocks$28,575 $41,481 
Total
$28,575 $41,481 

Unrealized holding gains and losses are reported in the unaudited Consolidated Financial Statements of Operations as net investment gains. 

Net Investment Gains

Gross investment gains and losses for the three- and six-month periods ended June 30, 2026 and 2025 are summarized as follows:

Three Months Ended
June 30,Six Months Ended
June 30,
(in thousands)2026202520262025
Gross realized gains from securities:
Corporate debt securities$1 $2 $35 $5 
Common stocks
2,031 1,599 2,220 4,156 
Total
$2,032 $1,601 $2,255 $4,161 
Gross realized losses from securities:
Corporate debt securities$(6)$— $(6)$— 
Common stocks(166)(326)(272)(613)
Total
$(172)$(326)$(278)$(613)
Net realized gains from securities$1,860 $1,275 $1,977 $3,548 
Gross realized gains (losses) on other investments:
 Gains on other investments$— $— $— $1 
Write-down of other assets(362)(144)(362)(419)
Total
$(362)$(144)$(362)$(418)
Net realized investment gains $1,498 $1,131 $1,615 $3,130 
Changes in the estimated fair value of equity security investments$3,297 $973 $3,704 $(2,205)
Net investment gains$4,795 $2,104 $5,319 $925 

Realized gains and losses are determined on the specific identification method.  

15

Variable Interest Entities

The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause and no participation rights exist. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of June 30, 2026 and December 31, 2025:

June 30, 2026 (in thousands)Balance Sheet ClassificationCarrying ValueEstimated
Fair ValueMaximum Potential Loss (a)
Real estate LLCs or LPsOther investments$15,669 $16,774 $21,716 
Small business investment LPsOther investments4,491 4,491 4,132 
Total
$20,160 $21,265 $25,848 

Dec