Investors Title Company (NASDAQ: ITIC) has announced its second-quarter results for the period ending June 30, 2025. The company reported a net income of $12.3 million, a significant increase from the $8.9 million reported in the prior year period. This represents a 38.2% year-over-year increase in net income. Earnings per diluted share also saw a substantial rise, reaching $6.48 compared to $4.70 in the prior year period, marking a 37.9% increase.
Revenues for the second quarter increased by 12.6% to $73.6 million, up from $65.4 million in the prior year period. The growth in revenues was primarily driven by a $4.0 million increase in net premiums written and escrow and title-related fees, reflecting higher real estate activity levels. Additionally, other revenue increased by $2.7 million due to a gain on assets transferred to a joint venture, while non-title services revenue grew by $1.2 million, mainly from increases in revenue from like-kind exchanges and management services. Net investment gains also saw an increase of $862 thousand due to changes in the estimated fair value of equity security investments.
Operating expenses for the second quarter increased by 6.9% to $57.9 million, compared to $54.1 million in the prior year period. This rise was largely driven by higher agent commissions and an increase in the provision for claims, correlating with the growth in agent business and higher reserves on reported claims.
For the six months ended June 30, 2025, net income increased by $2.1 million to $15.4 million, or $8.16 per diluted share, compared to $13.4 million, or $7.10 per diluted share, for the prior year period. Revenues for the six-month period increased by 9.6% to $130.2 million, up from $118.8 million in the prior year period. Operating expenses also increased by 8.4% to $110.4 million, compared to $101.8 million for the prior year period.
Income before income taxes for the six-month period increased to $19.9 million, versus $17.1 million in the prior year period. Excluding the impact of net investment gains, adjusted income before income taxes (non-GAAP) increased to $18.9 million, compared to $13.4 million in the prior year period.
Chairman J. Allen Fine expressed satisfaction with the company's performance, noting, "We are pleased to report our strongest quarterly performance in over three years, reflecting solid execution and broad-based revenue growth. The increase in profitability was driven largely by growth in title insurance revenues, aided by increases in our non-title business segments, particularly our like-kind exchange subsidiary."
The company's strong performance has positioned it well for continued momentum in the upcoming quarters, with incoming order volumes in the second quarter exceeding those of the same period last year. Following these announcements, the company's shares moved 2.15%, and are now trading at a price of $223.00. For the full picture, make sure to review INVESTORS TITLE CO's 8-K report.
