Document And Entity Information
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Document And Entity Information
6 Months Ended
Jun. 30, 2012
Jul. 19, 2012
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2012  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2012  
Entity Registrant Name INVESTORS TITLE CO  
Entity Central Index Key 0000720858  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   2,089,604

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Jun. 30, 2012
Dec. 31, 2011
Investments in securities    
Fixed maturities, available-for-sale, at fair value (amortized cost: 2012: $82,085,108; 2011: $78,783,968) $ 88,611,642 $ 85,407,365
Equity securities, available-for-sale, at fair value (cost: 2012: $19,690,734; 2011: $17,652,745) 25,961,611 22,549,975
Short-term investments 8,420,944 14,112,262
Other investments 5,596,960 3,631,714
Total investments 128,591,157 125,701,316
Cash and cash equivalents 17,457,651 18,042,258
Premium and fees receivable (less allowance for doubtful accounts: 2012: $1,699,000; 2011: $1,218,000) 8,607,352 6,810,000
Accrued interest and dividends 1,136,981 1,108,156
Prepaid expenses and other assets 4,457,909 2,743,517
Property, net 3,473,408 3,553,216
Current income taxes, net 372,426  
Total Assets 164,096,884 157,958,463
Liabilities:    
Reserves for claims 37,547,000 37,996,000
Accounts payable and accrued liabilities 12,799,616 12,330,383
Current income taxes payable   640,533
Deferred income taxes, net 1,879,537 479,363
Total liabilities 52,226,153 51,446,279
Commitments and Contingencies      
Redeemable Noncontrolling Interest 469,463  
Stockholders' Equity:    
Common stock - no par value (shares authorized 10,000,000; 2,099,309 and 2,107,681 shares issued and outstanding 2012 and 2011, respectively, excluding 291,676 shares for 2012 and 2011 of common stock held by the Company's subsidiary) 1 1
Retained earnings 103,053,451 99,003,018
Accumulated other comprehensive income 8,347,816 7,509,165
Total stockholders' equity 111,401,268 106,512,184
Total Liabilities and Stockholders' Equity 164,096,884 157,958,463
Class A Junior Participating Preferred Stock [Member]
   
Stockholders' Equity:    
Class A Junior Participating preferred stock (shares authorized 100,000; no shares issued)      

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Fixed maturities, available-for-sale, amortized cost $ 82,085,108 $ 78,783,968
Equity securities, available-for-sale, cost 19,690,734 17,652,745
Premiums and fees receivable, allowance for doubtful accounts $ 1,699,000 $ 1,218,000
Common stock, no par value      
Common stock, shares authorized 10,000,000 10,000,000
Common stock, shares issued 2,099,309 2,107,681
Common stock, shares outstanding 2,099,309 2,107,681
Common stock, held by Company's subsidiary 291,676 291,676
Class A Junior Participating Preferred Stock [Member]
   
Preferred stock, shares authorized 100,000 100,000
Preferred stock, shares issued 0 0

Consolidated Statements Of Income
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Consolidated Statements Of Income (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues:        
Net premiums written $ 23,241,570 $ 21,451,022 $ 42,908,990 $ 39,316,610
Investment income - interest and dividends 1,009,918 878,818 1,987,179 1,778,190
Net realized gain on investments 65,148 147,075 258,029 120,915
Other 1,763,689 1,242,298 3,340,401 2,525,518
Total Revenues 26,080,325 23,719,213 48,494,599 43,741,233
Operating Expenses:        
Commissions to agents 12,650,817 13,293,828 23,842,944 24,173,414
Provision for claims 361,107 1,229,961 1,992,466 1,951,587
Salaries, employee benefits and payroll taxes 5,489,107 4,639,675 10,479,739 9,331,671
Office occupancy and operations 1,037,835 952,460 1,964,873 1,916,387
Business development 404,718 372,239 798,165 759,786
Filing fees, franchise and local taxes 181,330 118,146 533,252 332,259
Premium and retaliatory taxes 474,486 502,984 889,280 908,457
Professional and contract labor fees 706,690 411,557 1,107,227 720,081
Other 154,534 159,558 321,813 262,579
Total Operating Expenses 21,460,624 21,680,408 41,929,759 40,356,221
Income before Income Taxes 4,619,701 2,038,805 6,564,840 3,385,012
Provision for Income Taxes 1,247,000 444,000 1,760,000 771,000
Net Income 3,372,701 1,594,805 4,804,840 2,614,012
Less: Net Income Attributable to Redeemable Noncontrolling Interests (23,213)   (23,213)  
Net Income Attributable to the Company $ 3,349,488 $ 1,594,805 $ 4,781,627 $ 2,614,012
Basic Earnings per Common Share $ 1.60 $ 0.75 $ 2.28 $ 1.20
Weighted Average Shares Outstanding - Basic 2,098,666 2,134,164 2,099,751 2,184,323
Diluted Earnings per Common Share $ 1.57 $ 0.74 $ 2.24 $ 1.19
Weighted Average Shares Outstanding - Diluted 2,132,732 2,155,116 2,131,164 2,201,398
Cash Dividends Paid per Common Share $ 0.07 $ 0.07 $ 0.14 $ 0.14

Consolidated Statements Of Comprehensive Income
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Consolidated Statements Of Comprehensive Income (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Consolidated Statements Of Comprehensive Income [Abstract]        
Net income $ 3,372,701 $ 1,594,805 $ 4,804,840 $ 2,614,012
Other comprehensive income, before tax:        
Amortization related to prior year service cost 2,349 5,097 4,698 10,194
Amortization of unrecognized loss 170 643 340 1,286
Unrealized (losses) gains on investments arising during the period (461,611) 1,080,784 1,534,815 1,760,987
Reclassification adjustment for sale of securities included in net income (141,687) (186,171) (334,568) (229,288)
Reclassification adjustment for write-down of securities included in net income 76,539 39,096 76,539 108,372
Other comprehensive (loss) income, before tax (524,240) 939,449 1,281,824 1,651,551
Income tax expense related to postretirement health benefits 856 1,949 1,713 3,905
Income tax (benefit) expense related to unrealized (losses) gains on investments arising during the year (155,412) 367,381 536,531 598,747
Income tax (benefit) expense related to reclassification adjustment for sale of securities included in net income (55,280) (65,462) (121,336) (79,219)
Income tax expense related to reclassification adjustment for write-down of securities included in net income 26,265 15,369 26,265 38,275
Net income tax (benefit) expense on other comprehensive income (183,571) 319,237 443,173 561,708
Other comprehensive (loss) income (340,669) 620,212 838,651 1,089,843
Comprehensive income 3,032,032 2,215,017 5,643,491 3,703,855
Less: Comprehensive income attributable to redeemable noncontrolling interest (23,213)   (23,213)  
Comprehensive income attributable to the Company $ 3,008,819 $ 2,215,017 $ 5,620,278 $ 3,703,855

Consolidated Statements Of Stockholders' Equity
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Consolidated Statements Of Stockholders' Equity (USD $)
Common Stock [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
Total
Balance at Dec. 31, 2010 $ 1 $ 98,240,109 $ 5,688,705 $ 103,928,815
Balance, shares at Dec. 31, 2010 2,282,596      
Net income   2,614,012   2,614,012
Dividends ($0.14 per share)   (302,221)   (302,221)
Shares of common stock repurchased and retired   (5,210,866)   (5,210,866)
Shares of common stock repurchased and retired, shares (162,411)      
Stock options exercised   152,526   152,526
Stock options exercised, shares 7,550      
Share-based compensation expense   106,053   106,053
Amortization related to postretirement health benefits     7,575 7,575
Net unrealized gain on investments     1,082,268 1,082,268
Balance at Jun. 30, 2011 1 95,599,613 6,778,548 102,378,162
Balance, shares at Jun. 30, 2011 2,127,735      
Balance at Dec. 31, 2011 1 99,003,018 7,509,165 106,512,184
Balance, shares at Dec. 31, 2011 2,107,681      
Net income   4,781,627   4,781,627
Dividends ($0.14 per share)   (294,048)   (294,048)
Shares of common stock repurchased and retired   (626,885)   (626,885)
Shares of common stock repurchased and retired, shares (14,502)      
Stock options exercised   152,792   152,792
Stock options exercised, shares 6,130     6,130
Share-based compensation expense   36,947   36,947
Amortization related to postretirement health benefits     3,325 3,325
Net unrealized gain on investments     835,326 835,326
Balance at Jun. 30, 2012 $ 1 $ 103,053,451 $ 8,347,816 $ 111,401,268
Balance, shares at Jun. 30, 2012 2,099,309      

Consolidated Statements Of Stockholders' Equity (Parenthetical)
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Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Consolidated Statements Of Stockholders' Equity [Abstract]        
Dividends, per share $ 0.07 $ 0.07 $ 0.14 $ 0.14

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating Activities    
Net income $ 4,804,840 $ 2,614,012
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 232,009 255,290
Amortization, net 201,824 165,255
Amortization related to postretirement benefits obligation 5,038 11,480
Share-based compensation expense related to stock options 36,947 106,053
Increase (decrease) in allowance for doubtful accounts on premiums receivable 481,000 (119,000)
Net gain on disposals of property (16,782)  
Net realized gain on investments (258,029) (120,915)
Net earnings from other investments (694,906) (159,071)
Provision for claims 1,992,466 1,951,587
Provision for deferred income taxes 957,000 909,000
Changes in assets and liabilities:    
(Increase) decrease in receivables (2,278,352) 1,881,960
Increase in other assets (261,317) (2,096,473)
Increase in current income taxes recoverable (372,426) (730,356)
(Decrease) increase in accounts payable and accrued liabilities (222,017) 2,113,184
Decrease in current income taxes payable (640,533) (1,056,356)
Payments of claims, net of recoveries (2,441,466) (2,545,287)
Net cash provided by operating activities 1,525,296 3,180,363
Investing Activities    
Purchases of available-for-sale securities (10,435,418) (3,553,734)
Purchases of short-term securities (2,424,628) (2,776,535)
Purchases of other investments (2,265,523) (225,315)
Purchase of subsidiary (350,000)  
Proceeds from sales and maturities of available-for-sale securities 4,947,338 5,412,268
Proceeds from sales and maturities of short-term securities 8,115,946 7,767,645
Proceeds from sales and distributions of other investments 995,592 249,324
Proceeds from sale of other assets 204,750  
Purchases of property (164,183) (157,566)
Proceeds from disposals of property 34,364  
Net cash (used in) provided by in investing activities (1,341,762) 6,716,087
Financing Activities    
Repurchases of common stock (626,885) (5,210,866)
Exercise of options 152,792 152,526
Dividends paid (294,048) (302,221)
Net cash used in financing activities (768,141) (5,360,561)
Net (Decrease) Increase in Cash and Cash Equivalents (584,607) 4,535,889
Cash and Cash Equivalents, Beginning of Period 18,042,258 8,117,031
Cash and Cash Equivalents, End of Period 17,457,651 12,652,920
Cash Paid During the Year for:    
Income taxes, payments, net 1,817,000 1,649,000
Non Cash Disclosures    
Non cash net unrealized gain on investments, net of deferred tax provision of $(441,460) and $(557,803) for 2012 and 2011, respectively (835,326) (1,082,268)
Non cash intangible assets acquired from purchase of subsidiary (1,481,900)  
Non cash contingent liability from purchase of subsidiary $ 691,250  

Consolidated Statements Of Cash Flows (Parenthetical)
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Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Consolidated Statements Of Cash Flows [Abstract]    
Non cash net unrealized gain on investments, deferred tax provision $ (441,460) $ (557,803)

Basis Of Presentation And Significant Accounting Policies
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Basis Of Presentation And Significant Accounting Policies
6 Months Ended
Jun. 30, 2012
Basis Of Presentation And Significant Accounting Policies [Abstract]  
Basis Of Presentation And Significant Accounting Policies

Note 1 - Basis of Presentation and Significant Accounting Policies

     Reference should be made to the "Notes to Consolidated Financial Statements" of Investors Title Company's ("the Company") Annual Report on Form 10-K for the year ended December 31, 2011 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 generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets. 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 in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the quarter ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

     Use of Estimates and Assumptions. The preparation of the Company's Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("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 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 to or disclosure in its Consolidated Financial Statements.

    Recently Issued Accounting Standards. In June 2011, the Financial Accounting Standards Board ("the FASB") updated requirements relating to the presentation of comprehensive income. The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

     In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS. For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

     In January 2010, the FASB updated the requirements for fair value measurements and disclosures to require companies to present purchases, sales, issuances and settlements of Level 3 securities on a gross rather than a net basis. Refer to Note 6 for a discussion of valuation hierarchy levels. This guidance became effective for fiscal years beginning after December 15, 2010, and interim periods within those fiscal years. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

     Pending Accounting Standards. In June 2011, the FASB updated requirements relating to the presentation of comprehensive income. In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments. All other requirements of the June 2011 update are not affected by the December 2011 update. The amendments are being made to allow the FASB time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented.


Basis Of Presentation And Significant Accounting Policies (Policy)
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Basis Of Presentation And Significant Accounting Policies (Policy)
6 Months Ended
Jun. 30, 2012
Basis Of Presentation And Significant Accounting Policies [Abstract]  
Principles Of Consolidation

     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 generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted. Earnings attributable to the redeemable noncontrolling interest are recorded on the Consolidated Statement of Income for majority-owned subsidiaries. The redeemable noncontrolling interest representing the portion of equity not related to the Company's ownership interest is recorded as redeemable equity in a separate section of the Consolidated Balance Sheets. 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 in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the quarter ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012.

Use Of Estimates And Assumptions

     Use of Estimates and Assumptions. The preparation of the Company's Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America ("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 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

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

Recently Issued Accounting Standards

    Recently Issued Accounting Standards. In June 2011, the Financial Accounting Standards Board ("the FASB") updated requirements relating to the presentation of comprehensive income. The objectives of this accounting update are to facilitate convergence of GAAP and International Financial Reporting Standards ("IFRS"), to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The main provisions of the guidance require that all nonowner changes in stockholders' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. For public entities, this update became effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

     In May 2011, the FASB updated requirements for measuring and disclosing fair value information, resulting in common principles and requirements in accordance with GAAP and IFRS. For public entities, this guidance became effective during interim and annual periods beginning after December 15, 2011. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

     In January 2010, the FASB updated the requirements for fair value measurements and disclosures to require companies to present purchases, sales, issuances and settlements of Level 3 securities on a gross rather than a net basis. Refer to Note 6 for a discussion of valuation hierarchy levels. This guidance became effective for fiscal years beginning after December 15, 2010, and interim periods within those fiscal years. The Company complied with this update, and it did not have an impact on the Company's financial condition or results of operations.

Pending Accounting Standards

     Pending Accounting Standards. In June 2011, the FASB updated requirements relating to the presentation of comprehensive income. In December 2011, the FASB issued a subsequent update to defer those changes in the June 2011 update that relate to the presentation of reclassification adjustments. All other requirements of the June 2011 update are not affected by the December 2011 update. The amendments are being made to allow the FASB time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented.


Reserves For Claims
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Reserves For Claims
6 Months Ended
Jun. 30, 2012
Reserves For Claims [Abstract]  
Reserves For Claims

Note 2 - Reserves for Claims

     Transactions in the reserves for claims for the six months ended June 30, 2012 and the year ended December 31, 2011 are summarized as follows:

    June 30, 2012     December 31, 2011  
Balance, beginning of period $ 37,996,000   $ 38,198,700  
Provision, charged to operations   1,992,466     3,342,427  
Payments of claims, net of recoveries   (2,441,466 )   (3,545,127 )
Ending balance $ 37,547,000   $ 37,996,000  

 

     The total reserve for all reported and unreported losses the Company incurred through June 30, 2012 is represented by the reserves for claims. 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 incurred claims of policyholders which may be reported in the future. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses which might result from pending and future claims under policies issued through June 30, 2012. The Company continually reviews and adjusts its reserve estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant.

     A summary of the Company's loss reserves, broken down into its components of known title claims and incurred but not reported claims ("IBNR"), follows:

    June 30, 2012 %   December 31, 2011 %
Known title claims $ 6,257,274 16.7 $ 6,233,501 16.4
IBNR   31,289,726 83.3   31,762,499 83.6
Total loss reserves $ 37,547,000 100 $ 37,996,000 100

 

     Claims and losses paid are charged to the reserves 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 acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.


Reserves For Claims (Tables)
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Reserves For Claims (Tables)
6 Months Ended
Jun. 30, 2012
Reserves For Claims [Abstract]  
Summary Of Transactions In Reserves For Claims
    June 30, 2012     December 31, 2011  
Balance, beginning of period $ 37,996,000   $ 38,198,700  
Provision, charged to operations   1,992,466     3,342,427  
Payments of claims, net of recoveries   (2,441,466 )   (3,545,127 )
Ending balance $ 37,547,000   $ 37,996,000  
Summary Of The Company's Loss Reserves
    June 30, 2012 %   December 31, 2011 %
Known title claims $ 6,257,274 16.7 $ 6,233,501 16.4
IBNR   31,289,726 83.3   31,762,499 83.6
Total loss reserves $ 37,547,000 100 $ 37,996,000 100

Reserves For Claims (Summary Of Transactions In Reserves For Claims) (Details)
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Reserves For Claims (Summary Of Transactions In Reserves For Claims) (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Reserves For Claims [Abstract]          
Balance, beginning of period     $ 37,996,000 $ 38,198,700 $ 38,198,700
Provision, charged to operations 361,107 1,229,961 1,992,466 1,951,587 3,342,427
Payments of claims, net of recoveries     (2,441,466) (2,545,287) (3,545,127)
Ending balance $ 37,547,000   $ 37,547,000   $ 37,996,000

Reserves For Claims (Summary Of The Company's Loss Reserves) (Details)
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Reserves For Claims (Summary Of The Company's Loss Reserves) (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Dec. 31, 2010
Reserves For Claims [Abstract]      
Known title claims $ 6,257,274 $ 6,233,501  
IBNR 31,289,726 31,762,499  
Total loss reserves $ 37,547,000 $ 37,996,000 $ 38,198,700
% of Known title claims 16.70% 16.40%  
% of IBNR 83.30% 83.60%  
% of Total loss reserves 100.00% 100.00%  

Earnings Per Common Share And Share Awards
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Earnings Per Common Share And Share Awards
6 Months Ended
Jun. 30, 2012
Earnings Per Common Share And Share Awards [Abstract]  
Earnings Per Common Share And Share Awards

Note 3 - Earnings Per Common Share and Share Awards

     Basic earnings per common share are 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 exercised, (a) the exercise price of a share-based award; (b), the amount of compensation cost, if any, for future service that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in additional paid-in capital, if any, are assumed to be used to repurchase shares in the current period. The number of incremental dilutive potential common shares, calculated using the treasury stock method, was 34,066 and 20,952 for the three months ended June 30, 2012, and 2011, respectively, and 31,413 and 17,075 for the six months ended June 30, 2012, and 2011, respectively.

 

     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   Six months ended
    June 30,   June 30,
    2012     2011   2012     2011
 
Net income $ 3,349,488 $ 1,594,805 $ 4,781,627 $ 2,614,012
Weighted average common shares                    
outstanding – Basic   2,098,666     2,134,164   2,099,751     2,184,323
Incremental shares outstanding assuming                    
the exercise of dilutive stock options                    
and SARs (share settled)   34,066     20,952   31,413     17,075
Weighted average common shares                    
outstanding - Diluted   2,132,732     2,155,116   2,131,164     2,201,398
 
Basic earnings per common share $ 1.60   $ 0.75 $ 2.28   $ 1.20
 
Diluted earnings per common share $ 1.57   $ 0.74 $ 2.24   $ 1.19

 

     There were 0 and 9,500 potential shares excluded from the computation of diluted earnings per share for the three months ended June 30, 2012 and 2011, respectively, because these shares were anti-dilutive. There were 5,000 and 11,500 potential shares excluded from the computation of diluted earnings per share for the six months ended June 30, 2012 and 2011, respectively, because these shares were anti-dilutive. These potential shares were anti-dilutive because the underlying share awards were out-of-the-money

     The Company has adopted stock award plans under which restricted stock, and options or stock appreciation rights ("SARs") to acquire shares (not to exceed 500,000 shares) of the Company's stock may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant. SARs and options (which have predominantly been incentive stock options) awarded under the plans thus far are exercisable and vest immediately or within one year or at 10% to 20% per year beginning on the date of grant and generally expire in five to ten years. All SARs issued to date have been share settled only. There have not been any SARs exercised in 2012 or 2011.

 

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

  Number
Of Shares
Weighted
Average
Exercise
Price
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
Outstanding as of January 1, 2011 110,800   $ 28.77 4.51 $ 353,955
SARs granted 3,000     41.50      
Options exercised (7,700 )   20.15      
Options/SARs cancelled/forfeited/expired (4,500 )   28.61      
Outstanding as of December 31, 2011 101,600   $ 29.81 3.91 $ 697,780
SARs granted 3,000     50.50      
Options exercised (6,130 )   24.93      
Options/SARs cancelled/forfeited/expired (70 )   31.00      
Outstanding as of June 30, 2012 98,400   $ 30.74 3.67 $ 2,576,857
 
Exercisable as of June 30, 2012 95,600   $ 30.28 3.61 $ 2,548,172
 
Unvested as of June 30, 2012 2,800   $ 46.69 5.94 $ 28,685

 

     During both the second quarters of 2012 and 2011, the Company issued 3,000 share-settled SARs to the directors of the Company. 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 such, these were valued using the Black-Scholes option valuation model. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted-average assumptions noted in the table shown below. 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 for periods during 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 2012 and 2011 were $18.84 and $15.55, respectively, and were estimated using the weighted-average assumptions shown in the table below.

  2012   2011  
Expected Life in Years 5.0   5.0  
Volatility 44.6 % 43.6 %
Interest Rate 0.8 % 1.9 %
Yield Rate 0.6 % 0.8 %

 

     There was approximately $37,000 and $106,000 of compensation expense relating to SARs or options vesting on or before June 30, 2012 and 2011, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income for the six months ended June 30, 2012 and 2011, respectively. As of June 30, 2012, there was approximately $62,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company's stock award plans. That cost is expected to be recognized over a weighted-average period of approximately 6 months.

 

     There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant.


Earnings Per Common Share And Share Awards (Tables)
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Earnings Per Common Share And Share Awards (Tables)
6 Months Ended
Jun. 30, 2012
Earnings Per Common Share And Share Awards [Abstract]  
Computation Of Basic And Diluted Earnings Per Share
    Three months ended   Six months ended
    June 30,   June 30,
    2012     2011   2012     2011
 
Net income $ 3,349,488 $ 1,594,805 $ 4,781,627 $ 2,614,012
Weighted average common shares                    
outstanding – Basic   2,098,666     2,134,164   2,099,751     2,184,323
Incremental shares outstanding assuming                    
the exercise of dilutive stock options                    
and SARs (share settled)   34,066     20,952   31,413     17,075
Weighted average common shares                    
outstanding - Diluted   2,132,732     2,155,116   2,131,164     2,201,398
 
Basic earnings per common share $ 1.60   $ 0.75 $ 2.28   $ 1.20
 
Diluted earnings per common share $ 1.57   $ 0.74 $ 2.24   $ 1.19
Summary Of Share-Based Award Transactions
  Number
Of Shares
Weighted
Average
Exercise
Price
Average
Remaining
Contractual
Term (years)
Aggregate
Intrinsic
Value
Outstanding as of January 1, 2011 110,800   $ 28.77 4.51 $ 353,955
SARs granted 3,000     41.50      
Options exercised (7,700 )   20.15      
Options/SARs cancelled/forfeited/expired (4,500 )   28.61      
Outstanding as of December 31, 2011 101,600   $ 29.81 3.91 $ 697,780
SARs granted 3,000     50.50      
Options exercised (6,130 )   24.93      
Options/SARs cancelled/forfeited/expired (70 )   31.00      
Outstanding as of June 30, 2012 98,400   $ 30.74 3.67 $ 2,576,857
 
Exercisable as of June 30, 2012 95,600   $ 30.28 3.61 $ 2,548,172
 
Unvested as of June 30, 2012 2,800   $ 46.69 5.94 $ 28,685
Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights
  2012   2011  
Expected Life in Years 5.0   5.0  
Volatility 44.6 % 43.6 %
Interest Rate 0.8 % 1.9 %
Yield Rate 0.6 % 0.8 %

Earnings Per Common Share And Share Awards (Narrative) (Details)
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Earnings Per Common Share And Share Awards (Narrative) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings Per Common Share And Share Awards [Line Items]        
Incremental dilutive potential common shares, calculated using treasury stock method 34,066 20,952 31,413 17,075
Anti-dilutive shares excluded from computation of diluted earnings per share 0 9,500 5,000 11,500
SARs and options vesting period     1 year  
Shares issued in period 3,000 3,000    
Weighted-average fair values of stock appreciation rights issued $ 18.84 $ 15.55    
Compensation expense relating to SARs or options vesting     $ 37,000 $ 106,000
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans $ 62,000   $ 62,000  
Weighted-average period of unrecognized compensation cost recognition     6 months  
Minimum [Member]
       
Earnings Per Common Share And Share Awards [Line Items]        
Annual rate at which stock appreciation rights and options are exercisable and vest     10.00%  
SARs and options expiration period     5 years  
Maximum [Member]
       
Earnings Per Common Share And Share Awards [Line Items]        
Maximum shares of Company stock to be granted to key employees or directors     500,000  
Annual rate at which stock appreciation rights and options are exercisable and vest     20.00%  
SARs and options expiration period     10 years  

Earnings Per Common Share And Share Awards (Computation Of Basic And Diluted Earnings Per Share) (Details)
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Earnings Per Common Share And Share Awards (Computation Of Basic And Diluted Earnings Per Share) (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Earnings Per Common Share And Share Awards [Abstract]        
Net income $ 3,349,488 $ 1,594,805 $ 4,781,627 $ 2,614,012
Weighted average common shares outstanding - Basic 2,098,666 2,134,164 2,099,751 2,184,323
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled) 34,066 20,952 31,413 17,075
Weighted average common shares outstanding - Diluted 2,132,732 2,155,116 2,131,164 2,201,398
Basic earnings per common share $ 1.60 $ 0.75 $ 2.28 $ 1.20
Diluted earnings per common share $ 1.57 $ 0.74 $ 2.24 $ 1.19

Earnings Per Common Share And Share Awards (Summary Of Share-Based Award Transactions) (Details)
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Earnings Per Common Share And Share Awards (Summary Of Share-Based Award Transactions) (Details) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Dec. 31, 2010
Earnings Per Common Share And Share Awards [Abstract]      
Number Of Shares, Outstanding Beginning Balance 101,600 110,800  
Number Of Shares, SARs granted 3,000 3,000  
Number Of Shares, Options exercised (6,130) (7,700)  
Number Of Shares, Options/SARs cancelled/forfeited/expired (70) (4,500)  
Number Of Shares, Outstanding Ending Balance 98,400 101,600 110,800
Number Of Shares, Exercisable as of June 30, 2012 95,600    
Number Of Shares, Unvested as of June 30, 2012 2,800    
Weighted Average Exercise Price, Outstanding Beginning Balance $ 29.81 $ 28.77  
Weighted Average Exercise Price, SARs granted $ 50.50 $ 41.50  
Weighted Average Exercise Price, Options exercised $ 24.93 $ 20.15  
Weighted Average Exercise Price, Options/SARs cancelled/forfeited/expired $ 31.00 $ 28.61  
Weighted Average Exercise Price, Outstanding Ending Balance $ 30.74 $ 29.81 $ 28.77
Weighted Average Exercise Price, Exercisable as of June 30, 2012 $ 30.28    
Weighted Average Exercise Price, Unvested as of June 30, 2012 $ 46.69    
Average Remaining Contractual Term, Outstanding Beginning Balance 3 years 8 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Outstanding Ending Balance 3 years 8 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Exercisable as of June 30, 2012 3 years 7 months 10 days    
Average Remaining Contractual Term, Unvested as of June 30, 2012 5 years 11 months 9 days    
Aggregate Intrinsic Value, Outstanding Beginning Balance $ 697,780 $ 353,955  
Aggregate Intrinsic Value, Outstanding Ending Balance 2,576,857 697,780 353,955
Aggregate Intrinsic Value, Exercisable as of June 30, 2012 2,548,172    
Aggregate Intrinsic Value, Unvested as of June 30, 2012 $ 28,685    

Earnings Per Common Share And Share Awards (Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights) (Details)
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Earnings Per Common Share And Share Awards (Weighted-Average Assumptions Of Fair Values For Stock Appreciation Rights) (Details)
3 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Reserves For Claims [Abstract]    
Expected Life in Years 5 years 5 years
Volatility 44.60% 43.60%
Interest Rate 0.80% 1.90%
Yield Rate 0.60% 0.80%

Segment Information
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Segment Information
6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information

Note 4 – Segment Information

     The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called "All Other."

     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 following table shows selected financial information about the Company's operations by segment for the periods ended June 30, 2012 and 2011: