[
X ]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the Quarterly Period Ended June 30, 2007
|
|
OR
|
|
[ ]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the transition period from____________________ to
____________________
|
|
North
Carolina
|
56-1110199
|
|
(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)
|
PART
I.
|
FINANCIAL
INFORMATION
|
|
Item
1. Financial
Statements
|
||||||||
Consolidated
Balance Sheets
|
||||||||
As
of June 30, 2007 and December 31, 2006
|
||||||||
(Unaudited)
|
||||||||
June
30, 2007
|
December
31, 2006
|
|||||||
Assets
|
||||||||
Investments
in securities:
|
||||||||
Fixed
maturities:
|
||||||||
Held-to-maturity,
at amortized cost (fair value: 2007: $1,227,945; 2006:
$1,237,613)
|
$ |
1,194,304
|
$ |
1,195,617
|
||||
Available-for-sale,
at fair value (amortized cost: 2007: $105,665,463; 2006:
$100,979,825)
|
105,281,130
|
101,954,292
|
||||||
Equity
securities, available-for-sale, at fair value
|
13,492,236
|
12,495,923
|
||||||
Short-term
investments
|
1,733,603
|
4,460,911
|
||||||
Other
investments
|
1,736,647
|
1,473,303
|
||||||
Total
investments
|
123,437,920
|
121,580,046
|
||||||
Cash
and cash equivalents
|
3,169,702
|
3,458,432
|
||||||
Premiums
and fees receivable, less allowance for doubtful accounts of
|
||||||||
$2,251,000
and $2,128,000 for 2007 and 2006, respectively
|
7,901,074
|
6,693,706
|
||||||
Accrued
interest and dividends
|
1,303,050
|
1,336,790
|
||||||
Prepaid
expenses and other assets
|
1,554,422
|
1,479,366
|
||||||
Property
acquired in settlement of claims
|
312,038
|
303,538
|
||||||
Property,
net
|
5,650,209
|
6,134,304
|
||||||
Deferred
income taxes, net (Note 7)
|
3,388,953
|
2,530,196
|
||||||
Total
Assets
|
$ |
146,717,368
|
$ |
143,516,378
|
||||
Liabilities
and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Reserves
for claims (Note 2)
|
$ |
40,560,000
|
$ |
36,906,000
|
||||
Accounts
payable and accrued liabilities
|
9,062,960
|
10,537,992
|
||||||
Commissions
and reinsurance payables
|
277,052
|
470,468
|
||||||
Current
income taxes payable (Note 7)
|
185,879
|
326,255
|
||||||
Total
liabilities
|
50,085,891
|
48,240,715
|
||||||
Commitments
and Contingencies (Note 8)
|
||||||||
Stockholders'
Equity:
|
||||||||
Class
A Junior Participating preferred stock (shares authorized 100,000;
no
shares issued)
|
-
|
-
|
||||||
Common
stock-no par value (shares authorized 10,000,000;
|
||||||||
2,483,415
and 2,507,325 shares issued and outstanding 2007 and 2006,
|
||||||||
respectively,
excluding 291,676 shares for 2007 and 2006
|
||||||||
of
common stock held by the Company's subsidiary)
|
1
|
1
|
||||||
Retained
earnings
|
93,960,059
|
92,134,608
|
||||||
Accumulated
other comprehensive income (Note 3)
|
2,671,417
|
3,141,054
|
||||||
Total
stockholders' equity
|
96,631,477
|
95,275,663
|
||||||
Total
Liabilities and Stockholders' Equity
|
$ |
146,717,368
|
$ |
143,516,378
|
||||
See
notes to Consolidated Financial Statements.
|
Consolidated
Statements of Income
|
||||||||||||||||
For
the Three and Six Months Ended June 30, 2007 and
2006
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30
|
June
30
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Revenues:
|
||||||||||||||||
Underwriting
income:
|
||||||||||||||||
Premiums
written
|
$ |
18,715,760
|
$ |
19,222,175
|
$ |
35,590,737
|
$ |
35,968,444
|
||||||||
Less-premiums
for reinsurance ceded
|
89,581
|
98,584
|
172,016
|
213,227
|
||||||||||||
Net
premiums written
|
18,626,179
|
19,123,591
|
35,418,721
|
35,755,217
|
||||||||||||
Investment
income - interest and dividends
|
1,271,755
|
1,034,696
|
2,481,362
|
2,028,750
|
||||||||||||
Net
realized gain (loss) on sales of investments
|
200,023
|
(17,190 | ) |
366,203
|
544,457
|
|||||||||||
Exchange
services revenue (Note 5)
|
870,083
|
1,908,357
|
2,115,562
|
2,936,089
|
||||||||||||
Other
|
1,139,493
|
1,077,167
|
2,059,454
|
2,040,956
|
||||||||||||
Total
|
22,107,533
|
23,126,621
|
42,441,302
|
43,305,469
|
||||||||||||
Operating
Expenses:
|
||||||||||||||||
Commissions
to agents
|
7,733,004
|
7,289,322
|
14,578,292
|
13,572,718
|
||||||||||||
Provision
for claims (Note 2)
|
4,352,005
|
2,030,412
|
6,161,438
|
3,885,691
|
||||||||||||
Salaries,
employee benefits and payroll taxes (Note 6)
|
5,091,139
|
4,917,022
|
10,365,514
|
9,922,869
|
||||||||||||
Office
occupancy and operations
|
1,452,901
|
1,266,042
|
2,889,024
|
2,731,355
|
||||||||||||
Business
development
|
556,734
|
547,505
|
1,079,916
|
1,053,163
|
||||||||||||
Filing
fees and taxes, other than payroll and income
|
126,455
|
142,850
|
291,668
|
293,708
|
||||||||||||
Premium
and retaliatory taxes
|
395,262
|
328,542
|
837,182
|
670,610
|
||||||||||||
Professional
and contract labor fees
|
826,140
|
737,534
|
1,471,150
|
1,325,156
|
||||||||||||
Other
|
278,744
|
222,885
|
500,755
|
441,751
|
||||||||||||
Total
|
20,812,384
|
17,482,114
|
38,174,939
|
33,897,021
|
||||||||||||
Income
Before Income Taxes
|
1,295,149
|
5,644,507
|
4,266,363
|
9,408,448
|
||||||||||||
Provision
For Income Taxes (Note 7)
|
141,000
|
1,328,970
|
790,000
|
2,217,970
|
||||||||||||
Net
Income
|
$ |
1,154,149
|
$ |
4,315,537
|
$ |
3,476,363
|
$ |
7,190,478
|
||||||||
Basic
Earnings Per Common Share (Note 4)
|
$ |
0.46
|
$ |
1.70
|
$ |
1.40
|
$ |
2.83
|
||||||||
Weighted
Average Shares Outstanding - Basic (Note 4)
|
2,484,874
|
2,537,883
|
2,491,955
|
2,543,475
|
||||||||||||
Diluted
Earnings Per Common Share (Note 4)
|
$ |
0.46
|
$ |
1.68
|
$ |
1.38
|
$ |
2.79
|
||||||||
Weighted
Average Shares Outstanding - Diluted (Note 4)
|
2,518,206
|
2,572,062
|
2,526,844
|
2,578,743
|
||||||||||||
See
notes to Consolidated Financial Statements.
|
Consolidated
Statements of Stockholders' Equity
|
||||||||||||||||||||
For
the Six Months Ended June 30, 2007 and 2006
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
Accumulated
|
Total
|
|||||||||||||||||||
Common
Stock
|
Retained
|
Other
Comprehensive
|
Stockholders'
|
|||||||||||||||||
Shares
|
Amount
|
Earnings
|
Income
|
Equity
|
||||||||||||||||
Balance,
December 31, 2005
|
2,549,434
|
$ |
1
|
$ |
81,477,022
|
$ |
2,820,233
|
$ |
84,297,256
|
|||||||||||
Net
income
|
7,190,478
|
7,190,478
|
||||||||||||||||||
Dividends
($.12 per share)
|
(305,220 | ) | (305,220 | ) | ||||||||||||||||
Shares
of common stock repurchased
|
(500 | ) | (22,445 | ) | (22,445 | ) | ||||||||||||||
Shares
of common stock repurchased and retired
|
(21,389 | ) | (925,990 | ) | (925,990 | ) | ||||||||||||||
Issuance
of common stock in payment of
|
||||||||||||||||||||
bonuses
and fees
|
236
|
10,085
|
10,085
|
|||||||||||||||||
Stock
options exercised
|
6,255
|
107,169
|
107,169
|
|||||||||||||||||
Share-based
compensation expense
|
36,297
|
36,297
|
||||||||||||||||||
Change
in investment accounting method
|
24,378
|
24,378
|
||||||||||||||||||
Net
unrealized loss on investments
|
(1,209,855 | ) | (1,209,855 | ) | ||||||||||||||||
Balance,
June 30, 2006
|
2,534,036
|
$ |
1
|
$ |
87,591,774
|
$ |
1,610,378
|
$ |
89,202,153
|
|||||||||||
Balance,
December 31, 2006
|
2,507,325
|
$ |
1
|
$ |
92,134,608
|
$ |
3,141,054
|
$ |
95,275,663
|
|||||||||||
Net
income
|
3,476,363
|
3,476,363
|
||||||||||||||||||
Dividends
($.12 per share)
|
(298,851 | ) | (298,851 | ) | ||||||||||||||||
Shares
of common stock repurchased and retired
|
(29,285 | ) | (1,485,379 | ) | (1,485,379 | ) | ||||||||||||||
Issuance
of common stock in payment of
|
||||||||||||||||||||
bonuses
and fees
|
40
|
1,999
|
1,999
|
|||||||||||||||||
Stock
options exercised
|
5,335
|
88,665
|
88,665
|
|||||||||||||||||
Share-based
compensation expense
|
42,654
|
42,654
|
||||||||||||||||||
Unrealized
loss on investments and retirement benefits, net of taxes
|
(469,637 | ) | (469,637 | ) | ||||||||||||||||
Balance,
June 30, 2007
|
2,483,415
|
$ |
1
|
$ |
93,960,059
|
$ |
2,671,417
|
$ |
96,631,477
|
|||||||||||
See
notes to Consolidated Financial Statements.
|
||||||||||||||||||||
Consolidated
Statements of Cash Flows
|
||||||||
For
the Six Months Ended June 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
2007
|
2006
|
|||||||
Operating
Activities:
|
||||||||
Net
income
|
$ |
3,476,363
|
$ |
7,190,478
|
||||
Adjustments
to reconcile net income to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Depreciation
|
645,599
|
528,423
|
||||||
Amortization
on investments, net
|
139,091
|
78,756
|
||||||
Amortization
of prior service cost
|
8,893
|
-
|
||||||
Issuance
of common stock in payment of bonuses and fees
|
1,999
|
10,085
|
||||||
Share-based
compensation expense related to stock options
|
42,654
|
36,297
|
||||||
Provision
for losses on premiums receivable
|
123,000
|
159,000
|
||||||
Net
gain on disposals of property
|
(2,673 | ) | (2,149 | ) | ||||
Net
realized gain on sales of investments
|
(366,203 | ) | (544,457 | ) | ||||
Provision
for claims
|
6,161,438
|
3,885,691
|
||||||
Provision
(benefit) for deferred income taxes
|
(616,000 | ) |
170,970
|
|||||
Changes
in assets and liabilities:
|
||||||||
Increase
in receivables and other assets
|
(1,380,184 | ) | (595,295 | ) | ||||
Increase
(decrease) in accounts payable and accrued liabilities
|
(477,012 | ) |
1,876,185
|
|||||
Decrease
in commissions and reinsurance payables
|
(193,416 | ) | (83,713 | ) | ||||
Decrease
in current income taxes payable
|
(140,376 | ) | (667,667 | ) | ||||
Payments
of claims, net of recoveries
|
(2,507,438 | ) | (2,876,691 | ) | ||||
Net
cash provided by operating activities
|
4,915,735
|
9,165,913
|
||||||
Investing
Activities:
|
||||||||
Purchases
of available-for-sale securities
|
(28,812,517 | ) | (27,667,588 | ) | ||||
Purchases
of short-term securities
|
(162,520 | ) | (1,947,399 | ) | ||||
Purchases
of and net earnings (losses) from other investments
|
(534,343 | ) | (528,019 | ) | ||||
Proceeds
from sales and maturities of available-for-sale securities
|
23,960,070
|
7,898,120
|
||||||
Proceeds
from maturities of held-to-maturity securities
|
2,000
|
456,000
|
||||||
Proceeds
from sales and maturities of short-term securities
|
2,889,828
|
4,818,308
|
||||||
Proceeds
from sales and distributions of other investments
|
305,433
|
244,258
|
||||||
Other
investment transactions
|
-
|
(18,305 | ) | |||||
Purchases
of property
|
(277,264 | ) | (1,007,892 | ) | ||||
Proceeds
from disposals of property
|
118,433
|
17,175
|
||||||
Other
property transactions
|
-
|
23,685
|
||||||
Net
change in pending trades
|
(998,020 | ) | (1,224,700 | ) | ||||
Net
cash used in investing activities
|
(3,508,900 | ) | (18,936,357 | ) | ||||
Financing
Activities:
|
||||||||
Repurchases
of common stock, net
|
(1,485,379 | ) | (948,435 | ) | ||||
Exercise
of options
|
88,665
|
107,169
|
||||||
Dividends
paid
|
(298,851 | ) | (305,220 | ) | ||||
Net
cash used in financing activities
|
(1,695,565 | ) | (1,146,486 | ) | ||||
Net Decrease
in Cash and Cash Equivalents
|
(288,730 | ) | (10,916,930 | ) | ||||
Cash
and Cash Equivalents, Beginning of Period
|
3,458,432
|
14,608,481
|
||||||
Cash
and Cash Equivalents, End of Period
|
$ |
3,169,702
|
$ |
3,691,551
|
||||
Supplemental
Disclosures:
|
||||||||
Cash
Paid During the Period for:
|
||||||||
Income
Taxes, net of refunds
|
$ |
1,543,000
|
$ |
2,707,000
|
||||
Non
cash net unrealized loss on investments, net of
deferred
|
||||||||
tax
benefit of $245,782 and $626,007 for 2007 and 2006,
respectively
|
$ |
475,505
|
$ |
1,209,855
|
||||
See
notes to Consolidated Financial Statements.
|
June
30, 2007
|
December
31, 2006
|
|||||||
Balance,
beginning of period
|
$ |
36,906,000
|
$ |
34,857,000
|
||||
Provision,
charged to operations
|
6,161,438
|
7,405,211
|
||||||
Payments
of claims, net of recoveries
|
(2,507,438 | ) | (5,356,211 | ) | ||||
Ending
balance
|
$ |
40,560,000
|
$ |
36,906,000
|
Three
Months Ended
June
30, 2007
|
Title
Insurance
|
Exchange
Services
|
All
Other
|
Intersegment
Eliminations
|
Total
|
|||||||||||||||
Operating
revenues
|
$ |
19,112,832
|
$ |
870,083
|
$ |
855,171
|
$ | (202,331 | ) | $ |
20,635,755
|
|||||||||
Investment
income
|
1,021,389
|
6,501
|
261,366
|
(17,501 | ) |
1,271,755
|
||||||||||||||
Net
realized gain on sales
of investments
|
165,589
|
-
|
34,434
|
-
|
200,023
|
|||||||||||||||
Total
revenues
|
$ |
20,299,810
|
$ |
876,584
|
$ |
1,150,971
|
$ | (219,832 | ) | $ |
22,107,533
|
|||||||||
Operating
expenses
|
19,860,205
|
349,246
|
805,264
|
(202,331 | ) |
20,812,384
|
||||||||||||||
Income
before income
taxes
|
$ |
439,605
|
$ |
527,338
|
$ |
345,707
|
$ | (17,501 | ) | $ |
1,295,149
|
|||||||||
Assets,
net
|
$ |
118,239,859
|
$ |
788,769
|
$ |
27,688,740
|
$ |
-
|
$ |
146,717,368
|
Three
Months Ended
June
30, 2006
|
Title
Insurance
|
Exchange
Services
|
All
Other
|
Intersegment
Eliminations
|
Total
|
|||||||||||||||
Operating
revenues
|
$ |
19,489,246
|
$ |
1,908,357
|
$ |
887,455
|
$ | (175,943 | ) | $ |
22,109,115
|
|||||||||
Investment
income
|
910,548
|
3,716
|
138,042
|
(17,610 | ) |
1,034,696
|
||||||||||||||
Net
realized loss on sales
of investments
|
(17,190 | ) |
-
|
-
|
-
|
(17,190 | ) | |||||||||||||
Total
revenues
|
$ |
20,382,604
|
$ |
1,912,073
|
$ |
1,025,497
|
$ | (193,553 | ) | $ |
23,126,621
|
|||||||||
Operating
expenses
|
16,477,592
|
267,671
|
912,794
|
(175,943 | ) |
17,482,114
|
||||||||||||||
Income
before income
taxes
|
$ |
3,905,012
|
$ |
1,644,402
|
$ |
112,703
|
$ | (17,610 | ) | $ |
5,644,507
|
|||||||||
Assets,
net
|
$ |
110,626,511
|
$ |
1,210,531
|
$ |
22,448,488
|
$ |
-
|
$ |
134,285,530
|
Six
Months Ended
June
30, 2007
|
Title
Insurance
|
Exchange
Services
|
All
Other
|
Intersegment
Eliminations
|
Total
|
|||||||||||||||
Operating
revenues
|
$ |
36,279,878
|
$ |
2,115,562
|
$ |
1,602,949
|
$ | (404,652 | ) | $ |
39,593,737
|
|||||||||
Investment
income
|
2,024,719
|
15,714
|
475,931
|
(35,002 | ) |
2,481,362
|
||||||||||||||
Net
realized gain on sales
of investments
|
331,769
|
-
|
34,434
|
-
|
366,203
|
|||||||||||||||
Total
revenues
|
$ |
38,636,366
|
$ |
2,131,276
|
$ |
2,113,314
|
$ | (439,654 | ) | $ |
42,441,302
|
|||||||||
Operating
expenses
|
36,113,238
|
764,749
|
1,701,604
|
(404,652 | ) |
38,174,939
|
||||||||||||||
Income
before income
taxes
|
$ |
2,523,128
|
$ |
1,366,527
|
$ |
411,710
|
$ | (35,002 | ) | $ |
4,266,363
|
|||||||||
Assets,
net
|
$ |
118,239,859
|
$ |
788,769
|
$ |
27,688,740
|
$ |
-
|
$ |
146,717,368
|
Six
Months Ended
June
30, 2006
|
Title
Insurance
|
Exchange
Services
|
All
Other
|
Intersegment
Eliminations
|
Total
|
|||||||||||||||
Operating
revenues
|
$ |
36,650,655
|
$ |
2,936,089
|
$ |
1,569,124
|
$ | (423,606 | ) | $ |
40,732,262
|
|||||||||
Investment
income
|
1,803,428
|
11,413
|
249,309
|
(35,400 | ) |
2,028,750
|
||||||||||||||
Net
realized gain on sales
of investments
|
544,457
|
-
|
-
|
-
|
544,457
|
|||||||||||||||
Total
revenues
|
$ |
38,998,540
|
$ |
2,947,502
|
$ |
1,818,433
|
$ | (459,006 | ) | $ |
43,305,469
|
|||||||||
Operating
expenses
|
32,107,520
|
548,828
|
1,664,279
|
(423,606 | ) |
33,897,021
|
||||||||||||||
Income
before income
taxes
|
$ |
6,891,020
|
$ |
2,398,674
|
$ |
154,154
|
$ | (35,400 | ) | $ |
9,408,448
|
|||||||||
Assets,
net
|
$ |
110,626,511
|
$ |
1,210,531
|
$ |
22,448,488
|
$ |
-
|
$ |
134,285,530
|
For
the Three
Months
Ended
June
30,
|
For
the Six
Months
Ended
June
30,
|
||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||
Service
cost
|
$ |
3,494
|
$ |
3,557
|
$ |
6,988
|
$ |
7,114
|
|||||||
Interest
cost
|
3,662
|
3,515
|
7,324
|
7,030
|
|||||||||||
Amortization
of unrecognized prior service cost
|
5,097
|
5,097
|
10,194
|
10,194
|
|||||||||||
Amortization
of unrecognized gains
|
(651 | ) | (416 | ) | (1,302 | ) | (832 | ) | |||||||
Net
periodic benefits costs
|
$ |
11,602
|
$ |
11,753
|
$ |
23,204
|
$ |
23,506
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||||||
2007
|
%
|
2006
|
%
|
2007
|
%
|
2006
|
%
|
|||||||||||||||||||||
Branch
|
$ |
7,907,600
|
42
|
$ |
9,004,581
|
47
|
$ |
15,040,911
|
42
|
$ |
16,730,965
|
47
|
||||||||||||||||
Agency
|
10,718,579
|
58
|
10,119,010
|
53
|
20,377,810
|
58
|
19,024,252
|
53
|
||||||||||||||||||||
Total
|
$ |
18,626,179
|
100
|
$ |
19,123,591
|
100
|
$ |
35,418,721
|
100
|
$ |
35,755,217
|
100
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
State
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Alabama
|
$ |
151,318
|
$ |
330,545
|
$ |
290,678
|
$ |
574,181
|
||||||||
Florida
|
461,498
|
327,956
|
1,290,045
|
606,291
|
||||||||||||
Illinois
|
460,531
|
280,013
|
849,488
|
527,908
|
||||||||||||
Kentucky
|
675,454
|
583,539
|
1,225,144
|
1,157,037
|
||||||||||||
Maryland
|
310,321
|
407,905
|
597,192
|
781,674
|
||||||||||||
Michigan
|
798,861
|
881,521
|
1,578,186
|
1,758,830
|
||||||||||||
Minnesota
|
150,535
|
304,900
|
269,217
|
642,069
|
||||||||||||
Mississippi
|
271,235
|
167,225
|
535,077
|
301,677
|
||||||||||||
Nebraska
|
203,768
|
197,136
|
377,092
|
331,446
|
||||||||||||
New
York
|
658,675
|
709,195
|
1,165,434
|
1,212,791
|
||||||||||||
North
Carolina
|
9,218,284
|
9,773,452
|
17,131,757
|
18,214,934
|
||||||||||||
Pennsylvania
|
406,236
|
410,595
|
732,890
|
726,507
|
||||||||||||
South
Carolina
|
1,857,204
|
1,536,781
|
3,573,604
|
2,938,854
|
||||||||||||
Tennessee
|
732,461
|
614,769
|
1,381,851
|
1,281,092
|
||||||||||||
Virginia
|
1,572,652
|
1,897,939
|
3,133,156
|
3,572,042
|
||||||||||||
West
Virginia
|
545,827
|
640,423
|
1,013,752
|
1,095,841
|
||||||||||||
Other
|
236,163
|
158,281
|
434,507
|
238,844
|
||||||||||||
Direct
Premiums
|
18,711,023
|
19,222,175
|
35,579,070
|
35,962,018
|
||||||||||||
Reinsurance
Assumed
|
4,737
|
-
|
11,667
|
6,426
|
||||||||||||
Reinsurance
Ceded
|
(89,581 | ) | (98,584 | ) | (172,016 | ) | (213,227 | ) | ||||||||
Net
Premiums
|
$ |
18,626,179
|
$ |
19,123,591
|
$ |
35,418,721
|
$ |
35,755,217
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||||||||||||||
2007
|
%
|
2006
|
%
|
2007
|
%
|
2006
|
%
|
|||||||||||||||||||||
Title
insurance
|
$ |
19,680,273
|
94
|
$ |
16,358,539
|
94
|
$ |
35,756,301
|
94
|
$ |
31,766,899
|
94
|
||||||||||||||||
Exchange
services
|
335,748
|
2
|
247,245
|
1
|
735,437
|
2
|
510,004
|
1
|
|
|||||||||||||||||||
All
other
|
796,363
|
4
|
876,330
|
5
|
1,683,201
|
4
|
1,620,118
|
5
|
||||||||||||||||||||
Total
|
$ |
20,812,384
|
100
|
$ |
17,482,114
|
100
|
$ |
38,174,939
|
100
|
$ |
33,897,021
|
100
|
(a)
|
None
|
(b)
|
None
|
(c)
|
The
following table provides information about purchases by the Company
(and
all affiliated purchasers) during the quarter ended June 30, 2007
of
equity securities that are registered by the Company pursuant to
Section
12 of the Exchange Act:
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price
Paid
per Share
|
Total
Number of
Shares
Purchased as
Part
of Publicly
Announced
Plan
|
Maximum
Number
of Shares
that
May Yet Be
Purchased
Under
the
Plan
|
||||||||||||
Beginning
of period
|
323,330
|
|||||||||||||||
04/01/07–
04/30/07
|
-
|
-
|
323,330
|
|||||||||||||
05/01/07–
05/31/07
|
3,933
|
$ |
48.51
|
3,933
|
319,397
|
|||||||||||
06/01/07–
06/30/07
|
1,909
|
$ |
49.62
|
1,909
|
317,488
|
|||||||||||
Total:
|
5,842
|
$ |
48.87
|
5,842
|
317,488
|
(a)
|
Investors
Title Company's Annual Meeting of Shareholders was held on May
16,
2007.
|
(c)
|
The
voting results for the proposal to elect three Directors to the
Company's
Board of Directors, each for a three-year term, are as
follows:
|
Director
|
For
|
Against
|
Abstentions
|
Withheld
|
Broker
Non-votes
|
J.
Allen Fine
|
2,110,330
|
N/A
|
N/A
|
68,941
|
N/A
|
David
L. Francis
|
2,109,650
|
N/A
|
N/A
|
69,621
|
N/A
|
A.
Scott Parker III
|
2,110,230
|
N/A
|
N/A
|
69,041
|
N/A
|
(a)
|
Exhibits
|
31(i)
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
31(ii)
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant
to Section
906 of the Sarbanes-Oxley Act of
2002
|
INVESTORS
TITLE COMPANY
|
||
By:
|
/s/
James A. Fine, Jr.
|
|
James
A. Fine, Jr.
|
||
President,
Principal Financial Officer and
|
||
Principal
Accounting Officer
|
||
Dated:
August 7, 2007
|