Document And Entity Information
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Document And Entity Information
9 Months Ended
Sep. 30, 2012
Oct. 24, 2012
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2012  
Document Fiscal Period Focus Q3  
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   2,062,854

Consolidated Balance Sheets
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Consolidated Balance Sheets (USD $)
Sep. 30, 2012
Dec. 31, 2011
Investments in securities    
Fixed maturities, available-for-sale, at fair value (amortized cost: 2012: $78,228,525; 2011: $78,783,968) $ 85,167,066 $ 85,407,365
Equity securities, available-for-sale, at fair value (cost: 2012: $20,179,479; 2011: $17,652,745) 28,081,485 22,549,975
Short-term investments 11,231,113 14,112,262
Other investments 5,925,020 3,631,714
Total investments 130,404,684 125,701,316
Cash and cash equivalents 19,982,759 18,042,258
Premium and fees receivable (less allowance for doubtful accounts: 2012: $1,712,000; 2011: $1,218,000) 10,208,947 6,810,000
Accrued interest and dividends 919,443 1,108,156
Prepaid expenses and other assets 4,938,693 2,743,517
Property, net 3,555,510 3,553,216
Total Assets 170,010,036 157,958,463
Liabilities:    
Reserves for claims 39,006,000 37,996,000
Accounts payable and accrued liabilities 13,869,604 12,330,383
Current income taxes payable 283,595 640,533
Deferred income taxes, net 2,701,940 479,363
Total liabilities 55,861,139 51,446,279
Commitments and Contingencies      
Redeemable Noncontrolling Interest 550,193 0
Stockholders' Equity:    
Common stock - no par value (shares authorized 10,000,000; 2,062,604 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 103,908,636 99,003,018
Accumulated other comprehensive income 9,690,067 7,509,165
Total stockholders' equity 113,598,704 106,512,184
Total Liabilities and Stockholders' Equity 170,010,036 157,958,463
Class A Junior Participating Preferred Stock [Member]
   
Stockholders' Equity:    
Class A Junior Participating preferred stock (shares authorized 100,000; no shares issued) $ 0 $ 0

Consolidated Balance Sheets (Parenthetical)
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Consolidated Balance Sheets (Parenthetical) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Fixed maturities, available-for-sale, amortized cost $ 78,228,525 $ 78,783,968
Equity securities, available-for-sale, cost 20,179,479 17,652,745
Premiums and fees receivable, allowance for doubtful accounts $ 1,712,000 $ 1,218,000
Common stock, no par value      
Common stock, shares authorized 10,000,000 10,000,000
Common stock, shares issued 2,062,604 2,107,681
Common stock, shares outstanding 2,062,604 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 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenues:        
Net premiums written $ 29,018,123 $ 23,986,592 $ 71,927,113 $ 63,303,202
Investment income - interest and dividends 962,573 887,055 2,949,752 2,665,245
Net realized gain (loss) on investments 99,790 (200,087) 357,819 (79,172)
Other 2,196,922 1,443,310 5,537,323 3,968,828
Total Revenues 32,277,408 26,116,870 80,772,007 69,858,103
Operating Expenses:        
Commissions to agents 16,840,421 15,161,823 40,683,365 39,335,237
Provision for claims 2,432,057 349,672 4,424,523 2,301,259
Salaries, employee benefits and payroll taxes 5,597,634 4,778,542 16,077,373 14,110,213
Office occupancy and operations 954,876 919,681 2,919,749 2,836,068
Business development 488,401 363,731 1,286,566 1,123,517
Filing fees, franchise and local taxes 140,740 79,638 673,992 411,897
Premium and retaliatory taxes 423,626 459,711 1,312,906 1,368,168
Professional and contract labor fees 548,052 412,227 1,655,279 1,132,308
Other 133,686 130,380 455,499 392,959
Total Operating Expenses 27,559,493 22,655,405 69,489,252 63,011,626
Income before Income Taxes 4,717,915 3,461,465 11,282,755 6,846,477
Provision for Income Taxes 1,479,000 1,021,000 3,239,000 1,792,000
Net Income 3,238,915 2,440,465 8,043,755 5,054,477
Less: Net Income Attributable to Redeemable Noncontrolling Interests 80,730 0 103,943 0
Net Income Attributable to the Company $ 3,158,185 $ 2,440,465 $ 7,939,812 $ 5,054,477
Basic Earnings per Common Share $ 1.52 $ 1.15 $ 3.80 $ 2.34
Weighted Average Shares Outstanding - Basic 2,071,605 2,124,078 2,090,369 2,164,240
Diluted Earnings per Common Share $ 1.50 $ 1.14 $ 3.74 $ 2.32
Weighted Average Shares Outstanding - Diluted 2,108,526 2,143,327 2,124,122 2,180,455
Cash Dividends Paid per Common Share $ 0.07 $ 0.07 $ 0.21 $ 0.21

Consolidated Statements Of Comprehensive Income
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Consolidated Statements Of Comprehensive Income (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Consolidated Statements Of Comprehensive Income [Abstract]        
Net income $ 3,238,915 $ 2,440,465 $ 8,043,755 $ 5,054,477
Other comprehensive income, before tax:        
Amortization related to prior year service cost 2,349 (415) 7,047 9,779
Amortization of unrecognized loss (gain) 171 (1,525) 511 (239)
Unrealized gains (losses) on investments arising during the period 2,142,925 (1,217,304) 3,677,740 543,683
Reclassification adjustment for sale of securities included in net income (99,790) 49,979 (434,358) (179,309)
Reclassification adjustment for write-down of securities included in net income 0 150,109 76,539 258,481
Other comprehensive income (loss), before tax 2,045,655 (1,019,156) 3,327,479 632,395
Income tax expense (benefit) related to postretirement health benefits 858 (661) 2,571 3,244
Income tax expense (benefit) related to unrealized gains (losses) on investments arising during the year 737,122 (427,839) 1,273,653 170,908
Income tax (benefit) expense related to reclassification adjustment for sale of securities included in net income (34,576) 17,377 (155,912) (61,842)
Income tax expense related to reclassification adjustment for write-down of securities included in net income 0 51,613 26,265 89,888
Net income tax expense (benefit) on other comprehensive income 703,404 (359,510) 1,146,577 202,198
Other comprehensive income (loss) 1,342,251 (659,646) 2,180,902 430,197
Comprehensive income 4,581,166 1,780,819 10,224,657 5,484,674
Less: Comprehensive income attributable to redeemable noncontrolling interest 80,730 0 103,943 0
Comprehensive income attributable to the Company $ 4,500,436 $ 1,780,819 $ 10,120,714 $ 5,484,674

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   5,054,477   5,054,477
Dividends   (450,822)   (450,822)
Shares of common stock repurchased and retired   (5,426,478)   (5,426,478)
Shares of common stock repurchased and retired, shares (168,516)      
Stock options exercised   152,526   152,526
Stock options exercised, shares 7,550      
Share-based compensation expense   159,783   159,783
Amortization related to postretirement health benefits     6,296 6,296
Net unrealized gain on investments     423,901 423,901
Balance at Sep. 30, 2011 1 97,729,595 6,118,902 103,848,498
Balance, shares at Sep. 30, 2011 2,121,630      
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   7,939,812   7,939,812
Dividends   (438,431)   (438,431)
Shares of common stock repurchased and retired   (2,804,412)   (2,804,412)
Shares of common stock repurchased and retired, shares (51,207)      
Stock options exercised   152,792   152,792
Stock options exercised, shares 6,130     6,130
Share-based compensation expense   55,857   55,857
Amortization related to postretirement health benefits     4,987 4,987
Net unrealized gain on investments     2,175,915 2,175,915
Balance at Sep. 30, 2012 $ 1 $ 103,908,636 $ 9,690,067 $ 113,598,704
Balance, shares at Sep. 30, 2012 2,062,604      

Consolidated Statements Of Stockholders' Equity (Parenthetical)
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Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Consolidated Statements Of Stockholders' Equity [Abstract]        
Dividends, per share $ 0.07 $ 0.07 $ 0.21 $ 0.21

Consolidated Statements Of Cash Flows
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Consolidated Statements Of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Operating Activities    
Net income $ 8,043,755 $ 5,054,477
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation 348,334 360,820
Amortization, net 320,666 250,728
Amortization related to postretirement benefits obligation 7,558 9,540
Share-based compensation expense related to stock options 55,857 159,783
Increase (decrease) in allowance for doubtful accounts on premiums receivable 494,000 (115,000)
Net gain on disposals of property (23,076) (26,528)
Net realized (gain) loss on investments (357,819) 79,172
Net earnings from other investments (1,211,188) (396,487)
Provision for claims 4,424,523 2,301,259
Provision for deferred income taxes 1,076,000 1,233,000
Changes in assets and liabilities:    
(Increase) decrease in receivables (3,892,948) 762,755
(Increase) decrease in other assets (524,563) 73,731
Increase in current income taxes recoverable 0 (506,717)
Increase in accounts payable and accrued liabilities 847,971 2,840,359
Decrease in current income taxes payable (356,938) (1,056,356)
Payments of claims, net of recoveries (3,414,523) (2,951,959)
Net cash provided by operating activities 5,837,609 8,072,577
Investing Activities    
Purchases of available-for-sale securities (14,000,215) (8,610,912)
Purchases of short-term securities (5,434,469) (4,592,762)
Purchases of other investments (2,460,907) (341,117)
Purchase of subsidiary (350,000) 0
Proceeds from sales and maturities of available-for-sale securities 11,860,920 7,503,245
Proceeds from sales and maturities of short-term securities 8,315,618 10,072,820
Proceeds from sales and distributions of other investments 1,379,198 492,975
Proceeds from sale of other assets 204,750 0
Purchases of property (373,045) (328,138)
Proceeds from disposals of property 51,093 31,157
Net cash (used in) provided by in investing activities (807,057) 4,227,268
Financing Activities    
Repurchases of common stock (2,804,412) (5,426,478)
Exercise of options 152,792 152,526
Dividends paid (438,431) (450,822)
Net cash used in financing activities (3,090,051) (5,724,774)
Net Increase in Cash and Cash Equivalents 1,940,501 6,575,071
Cash and Cash Equivalents, Beginning of Period 18,042,258 8,117,031
Cash and Cash Equivalents, End of Period 19,982,759 14,692,102
Cash Paid During the Year for:    
Income taxes, payments, net 2,523,000 2,125,000
Non-Cash Disclosures    
Non-cash net unrealized gain on investments, net of deferred tax provision of $(1,144,006) and $(198,953) for 2012 and 2011, respectively (2,175,915) (423,901)
Non-cash intangible assets acquired from purchase of subsidiary (1,481,900) 0
Non-cash contingent liability from purchase of subsidiary $ 691,250 $ 0

Consolidated Statements Of Cash Flows (Parenthetical)
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Consolidated Statements Of Cash Flows (Parenthetical) (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Consolidated Statements Of Cash Flows [Abstract]    
Non cash net unrealized gain on investments, deferred tax provision $ (1,144,006) $ (198,953)

Basis Of Presentation And Significant Accounting Policies
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Basis Of Presentation And Significant Accounting Policies
9 Months Ended
Sep. 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, 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 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 September 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. On November 12, 2002, the Company's Board of Directors adopted a shareholders' rights plan, pursuant to which the Board of Directors authorized and declared a dividend distribution of one stock purchase right for each outstanding share of common stock of the Company to stockholders of record at the close of business on December 2, 2002. Subsequently issued shares of common stock also carry stock purchase rights. Unless terminated or redeemed by the Board of Directors, the stock purchase rights become exercisable based upon certain limited conditions related to acquisitions of the Company's common stock, tender offers and certain business combinations involving the Company. On October 31, 2012, the shareholders' rights plan was amended to, among other things, extend the expiration date of the plan from November 11, 2012 to October 31, 2022 and increase the exercise price of the stock purchase rights from $80 per unit to $220 per unit. In connection with the amendments to the shareholders' rights plan, the Board of Directors of the Company also amended the Company's Articles of Incorporation to increase the number of shares designated under the rights plan as Series A Participating Preferred Stock from 100,000 shares to 200,000 shares.

     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.

     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)
9 Months Ended
Sep. 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, 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 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 September 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. On November 12, 2002, the Company's Board of Directors adopted a shareholders' rights plan, pursuant to which the Board of Directors authorized and declared a dividend distribution of one stock purchase right for each outstanding share of common stock of the Company to stockholders of record at the close of business on December 2, 2002. Subsequently issued shares of common stock also carry stock purchase rights. Unless terminated or redeemed by the Board of Directors, the stock purchase rights become exercisable based upon certain limited conditions related to acquisitions of the Company's common stock, tender offers and certain business combinations involving the Company. On October 31, 2012, the shareholders' rights plan was amended to, among other things, extend the expiration date of the plan from November 11, 2012 to October 31, 2022 and increase the exercise price of the stock purchase rights from $80 per unit to $220 per unit. In connection with the amendments to the shareholders' rights plan, the Board of Directors of the Company also amended the Company's Articles of Incorporation to increase the number of shares designated under the rights plan as Series A Participating Preferred Stock from 100,000 shares to 200,000 shares.

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.

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.


Basis Of Presentation And Significant Accounting Policies (Details)
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Basis Of Presentation And Significant Accounting Policies (Details) (USD $)
Oct. 12, 2012
Oct. 31, 2012
Before Plan Amendment [Member]
Oct. 31, 2012
Before Plan Amendment [Member]
Series A Participating Preferred Stock [Member]
Oct. 31, 2012
After Plan Amendment [Member]
Oct. 31, 2012
After Plan Amendment [Member]
Series A Participating Preferred Stock [Member]
Number of stock purchase right for each outstanding common stock 1        
Exercise price of stock purchase rights per unit   $ 80   $ 220  
Number of shares designated under the plan     100,000   200,000

Reserves For Claims
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Reserves For Claims
9 Months Ended
Sep. 30, 2012
Reserves For Claims [Abstract]  
Reserves For Claims

Note 2 - Reserves for Claims

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

    September 30, 2012     December 31, 2011  
Balance, beginning of period $ 37,996,000   $ 38,198,700  
Provision, charged to operations   4,424,523     3,342,427  
Payments of claims, net of recoveries   (3,414,523 )   (3,545,127 )
Ending balance $ 39,006,000   $ 37,996,000  

 

     The total reserve for all reported and unreported losses the Company incurred through September 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 8

 

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 September 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:

    September 30, 2012 %   December 31, 2011 %
Known title claims $ 5,925,874 15.2 $ 6,233,501 16.4
IBNR   33,080,126 84.8   31,762,499 83.6
Total loss reserves $ 39,006,000 100.0 $ 37,996,000 100.0

 

     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)
9 Months Ended
Sep. 30, 2012
Reserves For Claims [Abstract]  
Summary Of Transactions In Reserves For Claims
    September 30, 2012     December 31, 2011  
Balance, beginning of period $ 37,996,000   $ 38,198,700  
Provision, charged to operations   4,424,523     3,342,427  
Payments of claims, net of recoveries   (3,414,523 )   (3,545,127 )
Ending balance $ 39,006,000   $ 37,996,000  
Summary Of The Company's Loss Reserves
    September 30, 2012 %   December 31, 2011 %
Known title claims $ 5,925,874 15.2 $ 6,233,501 16.4
IBNR   33,080,126 84.8   31,762,499 83.6
Total loss reserves $ 39,006,000 100.0 $ 37,996,000 100.0

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 9 Months Ended 12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 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 2,432,057 349,672 4,424,523 2,301,259 3,342,427
Payments of claims, net of recoveries     (3,414,523) (2,951,959) (3,545,127)
Ending balance $ 39,006,000   $ 39,006,000   $ 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 $)
Sep. 30, 2012
Dec. 31, 2011
Dec. 31, 2010
Reserves For Claims [Abstract]      
Known title claims $ 5,925,874 $ 6,233,501  
IBNR 33,080,126 31,762,499  
Total loss reserves $ 39,006,000 $ 37,996,000 $ 38,198,700
% of Known title claims 15.20% 16.40%  
% of IBNR 84.80% 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
9 Months Ended
Sep. 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 36,921 and 19,249 for the three months ended September 30, 2012, and 2011, respectively, and 33,753 and 16,215 for the nine months ended September 30, 2012, and 2011, respectively.

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

    Three months ended   Nine months ended
    September 30,   September 30,
    2012     2011   2012     2011
 
Net income attributable to the Company $ 3,158,185 $ 2,440,465 $ 7,939,812 $ 5,054,477
Weighted average common shares                    
outstanding – Basic   2,071,605     2,124,078   2,090,369     2,164,240
Incremental shares outstanding assuming                    
the exercise of dilutive stock options                    
and SARs (share settled)   36,921     19,249   33,753     16,215
Weighted average common shares                    
outstanding - Diluted   2,108,526     2,143,327   2,124,122     2,180,455
 
Basic earnings per common share $ 1.52   $ 1.15 $ 3.80   $ 2.34
 
Diluted earnings per common share $ 1.50   $ 1.14 $ 3.74   $ 2.32

 

     There were 11,500 potential shares excluded from the computation of diluted earnings per share for both the three and nine month periods ended September 30, 2011, because these shares were anti-dilutive. These potential shares were anti-dilutive because the underlying share awards were out-of-the-money. There were no potential shares excluded from the computation of diluted earnings per share for either the three or nine month periods ended September 30, 2012.

     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:

        Weighted Average    
        Average Remaining   Aggregate
  Number     Exercise Contractual   Intrinsic
  Of Shares     Price Term (years)   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 September 30, 2012 98,400   $ 30.74 3.42 $ 3,394,561
 
Exercisable as of September 30, 2012 96,600   $ 30.43 3.38 $ 3,362,208
 
Unvested as of September 30, 2012 1,800   $ 47.27 5.82 $ 32,353

 

     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 $56,000 and $160,000 of compensation expense relating to SARs or options vesting on or before September 30, 2012 and 2011, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income for the nine months ended September 30, 2012 and 2011, respectively. As of September 30, 2012, there was approximately $43,000 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 5 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)
9 Months Ended
Sep. 30, 2012
Earnings Per Common Share And Share Awards [Abstract]  
Computation Of Basic And Diluted Earnings Per Share
    Three months ended   Nine months ended
    September 30,   September 30,
    2012     2011   2012     2011
 
Net income attributable to the Company $ 3,158,185 $ 2,440,465 $ 7,939,812 $ 5,054,477
Weighted average common shares                    
outstanding – Basic   2,071,605     2,124,078   2,090,369     2,164,240
Incremental shares outstanding assuming                    
the exercise of dilutive stock options                    
and SARs (share settled)   36,921     19,249   33,753     16,215
Weighted average common shares                    
outstanding - Diluted   2,108,526     2,143,327   2,124,122     2,180,455
 
Basic earnings per common share $ 1.52   $ 1.15 $ 3.80   $ 2.34
 
Diluted earnings per common share $ 1.50   $ 1.14 $ 3.74   $ 2.32
Summary Of Share-Based Award Transactions
        Weighted Average    
        Average Remaining   Aggregate
  Number     Exercise Contractual   Intrinsic
  Of Shares     Price Term (years)   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 September 30, 2012 98,400   $ 30.74 3.42 $ 3,394,561
 
Exercisable as of September 30, 2012 96,600   $ 30.43 3.38 $ 3,362,208
 
Unvested as of September 30, 2012 1,800   $ 47.27 5.82 $ 32,353
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 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Earnings Per Common Share And Share Awards [Line Items]        
Incremental dilutive potential common shares, calculated using treasury stock method 36,921 19,249 33,753 16,215
Anti-dilutive shares excluded from computation of diluted earnings per share   11,500   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     $ 56,000 $ 160,000
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans $ 43,000   $ 43,000  
Weighted-average period of unrecognized compensation cost recognition     5 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 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Earnings Per Common Share And Share Awards [Abstract]        
Net income attributable to the Company $ 3,158,185 $ 2,440,465 $ 7,939,812 $ 5,054,477
Weighted average common shares outstanding - Basic 2,071,605 2,124,078 2,090,369 2,164,240
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled) 36,921 19,249 33,753 16,215
Weighted average common shares outstanding - Diluted 2,108,526 2,143,327 2,124,122 2,180,455
Basic earnings per common share $ 1.52 $ 1.15 $ 3.80 $ 2.34
Diluted earnings per common share $ 1.50 $ 1.14 $ 3.74 $ 2.32

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 $)
9 Months Ended 12 Months Ended
Sep. 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 September 30, 2012 96,600    
Number Of Shares, Unvested as of September 30, 2012 1,800    
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 September 30, 2012 $ 30.43    
Weighted Average Exercise Price, Unvested as of September 30, 2012 $ 47.27    
Average Remaining Contractual Term, Outstanding Beginning Balance 3 years 5 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Outstanding Ending Balance 3 years 5 months 1 day 3 years 10 months 28 days 4 years 6 months 4 days
Average Remaining Contractual Term, Exercisable as of September 30, 2012 3 years 4 months 17 days    
Average Remaining Contractual Term, Unvested as of September 30, 2012 5 years 9 months 26 days    
Aggregate Intrinsic Value, Outstanding Beginning Balance $ 697,780 $ 353,955  
Aggregate Intrinsic Value, Outstanding Ending Balance 3,394,561 697,780 353,955
Aggregate Intrinsic Value, Exercisable as of September 30, 2012 3,362,208    
Aggregate Intrinsic Value, Unvested as of September 30, 2012 $ 32,353    

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)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Earnings Per Common Share And Share Awards [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
9 Months Ended
Sep. 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 September 30, 2012 and 2011

Three Months Ended   Title   All   Intersegment      
September 30, 2012   Insurance   Other   Eliminations     Total
Operating revenues $ 30,429,446 $ 1,356,733 $ (571,134 ) $ 31,215,045
Investment income   832,241   150,749   (20,417 )   962,573
Net realized gain on investments   85,560   14,230   0     99,790
Total revenues $ 31,347,247 $ 1,521,712 $ (591,551 ) $ 32,277,408
Operating expenses   27,086,970   1,026,236   (553,713 )   27,559,493
Income before income taxes $ 4,260,277 $ 495,476 $ (37,838 ) $ 4,717,915
Total assets $ 132,713,703 $ 37,296,333 $ 0   $ 170,010,036

 

Three Months Ended   Title     All     Intersegment        
September 30, 2011   Insurance     Other     Eliminations     Total  
Operating revenues $ 24,501,862   $ 1,128,526   $ (200,486 ) $ 25,429,902  
Investment income   783,495     123,977     (20,417 )   887,055  
Net realized loss on investments   (179,016 )   (21,071 )   0     (200,087 )
Total revenues $ 25,106,341   $ 1,231,432   $ (220,903 ) $ 26,116,870  
Operating expenses   21,620,657     1,235,234     (200,486 )   22,655,405  
Income (loss) before income taxes $ 3,485,684   $ (3,802 ) $ (20,417 ) $ 3,461,465  
Total assets $ 118,905,284   $ 36,591,725   $ 0   $ 155,497,009  

 

Nine Months Ended   Title   All   Intersegment      
September 30, 2012   Insurance   Other   Eliminations     Total
Operating revenues $ 74,967,470 $ 3,635,577 $ (1,138,611 ) $ 77,464,436
Investment income   2,566,875   444,129   (61,252 )   2,949,752
Net realized gain on investments   182,249   175,570   0     357,819
Total revenues $ 77,716,594 $ 4,255,276 $ (1,199,863 ) $ 80,772,007
Operating expenses   66,772,534   3,820,487   (1,103,769 )   69,489,252
Income before income taxes $ 10,944,060 $ 434,789 $ (96,094 ) $ 11,282,755
Total assets $ 132,713,703 $ 37,296,333 $ 0   $ 170,010,036

 

 

Nine Months Ended   Title     All     Intersegment        
September 30, 2011   Insurance     Other     Eliminations