10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2015

OR

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

For the transition period from ___________________  to ___________________

Commission File Number:  0-11774

INVESTORS TITLE COMPANY

(Exact name of registrant as specified in its charter)

North 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)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     X    No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes    X    No

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

Large accelerated filer	Accelerated filer	X	Non-accelerated filer	Smaller reporting company
			(do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   

Yes No     X   

As of October 15, 2015, there were 1,953,217 common shares of the registrant outstanding.

INVESTORS TITLE COMPANY

AND SUBSIDIARIES

INDEX

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014	1
	Consolidated Statements of Income For the Three and Nine Months Ended September 30, 2015 and 2014	2
	Consolidated Statements of Comprehensive Income For the Three and Nine Months Ended September 30, 2015 and 2014	3
	Consolidated Statements of Stockholders’ Equity For the Nine Months Ended September 30, 2015 and 2014	4
	Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2015 and 2014	5
	Notes to Consolidated Financial Statements	7
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1a.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	36
Item 6.	Exhibits	37
SIGNATURE		38

PART I.   FINANCIAL INFORMATION

Item 1.  Financial Statements

Investors Title Company and Subsidiaries

Consolidated Balance Sheets

As of September 30, 2015 and December 31, 2014

(Unaudited)

	September 30, 2015		December 31, 2014
Assets:
Investments in securities:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015: $94,114,403; 2014: $104,421,050)	$	98,034,042	$	109,048,290
Equity securities, available-for-sale, at fair value (cost: 2015: $24,247,215; 2014: $24,128,753)	35,135,885		39,254,981
Short-term investments	13,884,266		2,576,993
Other investments	10,069,708		8,530,929
Total investments	157,123,901		159,411,193
Cash and cash equivalents	19,290,813		15,826,515
Premium and fees receivable	9,067,775		8,544,183
Accrued interest and dividends	1,286,710		1,063,837
Prepaid expenses and other assets	8,599,846		7,732,677
Property, net	7,176,557		5,460,805
Total Assets	$	202,545,602	$	198,039,210
Liabilities and Stockholders’ Equity
Liabilities:
Reserves for claims	$	37,897,000	$	36,677,000
Accounts payable and accrued liabilities	19,441,453		18,290,819
Current income taxes payable	248,679		92,192
Deferred income taxes, net	5,635,321		5,415,493
Total liabilities	63,222,453		60,475,504
Commitments and Contingencies	—		—
Stockholders’ Equity:
Preferred stock (1,000,000 authorized shares; no shares issued)	—		—
Common stock - no par value (10,000,000 authorized shares; 1,953,418 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company's subsidiary)	1		1
Retained earnings	129,585,111		124,707,196
Accumulated other comprehensive income	9,606,451		12,856,509
Total stockholders’ equity attributable to the Company	139,191,563		137,563,706
Noncontrolling interests	131,586		—
Total stockholders' equity	139,323,149		137,563,706
Total Liabilities and Stockholders’ Equity	$	202,545,602	$	198,039,210

See notes to the Consolidated Financial Statements.

1

Investors Title Company and Subsidiaries

Consolidated Statements of Income

For the Three and NineSeptember 30, 2015 and 2014

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
Revenues:
Net premiums written	$	30,945,532		$	26,356,835	$	86,372,154		$	81,115,940
Investment income - interest and dividends	1,117,529			1,064,995		3,427,055			3,130,846
Net realized (loss) gain on investments	(338,631		)	8,689		601,336			592,908
Other	2,816,828			2,077,711		7,924,329			6,344,163
Total Revenues	34,541,258			29,508,230		98,324,874			91,183,857
Operating Expenses:
Commissions to agents	16,898,323			14,440,264		48,393,553			48,242,923
Provision for claims	703,979			1,507,814		3,621,401			4,177,478
Salaries, employee benefits and payroll taxes	6,957,874			6,609,425		21,101,955			19,250,116
Office occupancy and operations	1,342,288			1,257,009		4,089,806			3,683,980
Business development	568,189			552,215		1,633,358			1,581,872
Filing fees, franchise and local taxes	134,880			233,079		572,621			648,022
Premium and retaliatory taxes	573,336			491,927		1,684,674			1,332,492
Professional and contract labor fees	661,879			621,305		1,926,469			1,976,272
Other	264,012			196,702		708,918			656,653
Total Operating Expenses	28,104,760			25,909,740		83,732,755			81,549,808
Income before Income Taxes	6,436,498			3,598,490		14,592,119			9,634,049
Provision for Income Taxes	1,941,000			1,004,000		4,250,000			2,656,000
Net Income	4,495,498			2,594,490		10,342,119			6,978,049
Net Income Attributable to Noncontrolling Interests	(4,536		)	—		(4,536		)	(23,523		)
Net Income Attributable to the Company	$	4,490,962		$	2,594,490	$	10,337,583		$	6,954,526
Basic Earnings per Common Share	$	2.28		$	1.28	$	5.18		$	3.42
Weighted Average Shares Outstanding – Basic	1,967,923			2,028,818		1,995,120			2,033,637
Diluted Earnings per Common Share	$	2.28		$	1.28	$	5.17		$	3.41
Weighted Average Shares Outstanding – Diluted	1,972,233			2,032,644		2,000,043			2,038,875
Cash Dividends Paid per Common Share	$	0.08		$	0.08	$	0.24		$	0.24

See notes to the Consolidated Financial Statements.

2

Investors Title Company and Subsidiaries

Consolidated Statements of Comprehensive Income

For the Three and NineSeptember 30, 2015 and 2014

(Unaudited)

	Three Months Ended  September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Net income	$	4,495,498		$	2,594,490		$	10,342,119		$	6,978,049
Other comprehensive (loss) income, before tax:
Amortization related to prior year service cost	1,098			554			3,293			1,663
Amortization of unrecognized loss	878			—			2,635			—
Unrealized (losses) gains on investments arising during the period	(2,359,495		)	(960,948		)	(4,223,992		)	2,023,167
Reclassification adjustment for sales of securities included in net income	(458,058		)	(6,534		)	(1,390,070		)	(840,170		)
Reclassification adjustment for write-downs of securities included in net income	657,755			—			668,904			—
Other comprehensive (loss) income, before tax	(2,157,822		)	(966,928		)	(4,939,230		)	1,184,660
Income tax expense related to postretirement health benefits	672			188			2,016			565
Income tax (benefit) expense related to unrealized (losses) gains on investments arising during the year	(809,994		)	(332,034		)	(1,446,083		)	699,001
Income tax benefit related to reclassification adjustment for sales of securities included in net income	(156,447		)	(2,328		)	(474,198		)	(288,078		)
Income tax expense related to reclassification adjustment for write-downs of securities included in net income	225,293			—			229,093			—
Net income tax (benefit) expense on other comprehensive (loss) income	(740,476		)	(334,174		)	(1,689,172		)	411,488
Other comprehensive (loss) income	(1,417,346		)	(632,754		)	(3,250,058		)	773,172
Comprehensive Income	$	3,078,152		$	1,961,736		$	7,092,061		$	7,751,221
Comprehensive income attributable to noncontrolling interests	(4,536		)	—			(4,536		)	(23,523		)
Comprehensive Income Attributable to the Company	$	3,073,616		$	1,961,736		$	7,087,525		$	7,727,698

See notes to the Consolidated Financial Statements.

3

Investors Title Company and Subsidiaries

Consolidated Statements of Stockholders’ Equity

For the Nine Months Ended September 30,2015 and 2014

(Unaudited)

	Common Stock				Retained Earnings			Accumulated Other Comprehensive Income			Noncontrolling Interests		Total Stockholders’ Equity
	Shares		Amount
Balance, January 1, 2014	2,037,135		$	1	$	116,714,749		$	11,347,404		$	—	$	128,062,154
Net income attributable to the Company					6,954,526								6,954,526
Dividends ($0.24 per share)					(488,127		)						(488,127		)
Shares of common stock repurchased and retired	(9,824	)			(652,657		)						(652,657		)
Stock options and stock appreciation rights exercised	1,507				27,100								27,100
Share-based compensation expense					88,291								88,291
Amortization related to postretirement health benefits								1,098					1,098
Net unrealized gain on investments								772,074					772,074
Purchase of redeemable noncontrolling interest of subsidiary					(114,320		)						(114,320		)
Income tax benefit from share-based compensation					15,999								15,999
Balance, September 30, 2014	2,028,818		$	1	$	122,545,561		$	12,120,576		$	—	$	134,666,138
Balance, January 1, 2015	2,023,270		$	1	$	124,707,196		$	12,856,509		$	—	$	137,563,706
Net income attributable to the Company					10,337,583								10,337,583
Dividends ($0.24 per share)					(477,392		)						(477,392		)
Shares of common stock repurchased and retired	(72,044	)			(5,166,846		)						(5,166,846		)
Stock options and stock appreciation rights exercised	2,192				54,988								54,988
Share-based compensation expense					102,707								102,707
Amortization related to postretirement health benefits								3,912					3,912
Net unrealized loss on investments								(3,253,970		)			(3,253,970		)
Net effect of changes in ownership											127,050		127,050
Net income attributable to noncontrolling interests											4,536		4,536
Income tax benefit from share-based compensation					26,875								26,875
Balance, September 30, 2015	1,953,418		$	1	$	129,585,111		$	9,606,451		$	131,586	$	139,323,149

See notes to the Consolidated Financial Statements.

4

Investors Title Company and Subsidiaries

Consolidated Statements of Cash Flows

For the Nine Months Ended September 30,2015 and 2014

(Unaudited)

	Nine Months Ended September 30,
	2015			2014
Operating Activities
Net income	$	10,342,119		$	6,978,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	654,838			583,979
Amortization, net	542,841			458,635
Amortization related to postretirement benefits obligation	5,928			1,663
Share-based compensation expense related to stock options	102,707			88,291
Net (gain) loss on the disposals of property	(30,374		)	6,487
Net realized gain on investments	(601,336		)	(592,908		)
Net earnings from other investments	(1,774,927		)	(990,657		)
Provision for claims	3,621,401			4,177,478
Provision for deferred income taxes	1,909,000			1,468,000
Changes in assets and liabilities:
(Increase) decrease in receivables	(457,484		)	261,128
Increase in other assets	(1,110,322		)	(1,407,762		)
Increase in current income taxes recoverable	—			(1,257,252		)
Increase (decrease) in accounts payable and accrued liabilities	1,150,634			(1,640,499		)
Increase in current income taxes payable	156,487			—
Payments of claims, net of recoveries	(2,401,401		)	(3,285,478		)
Net cash provided by operating activities	12,110,111			4,849,154
Investing Activities
Purchases of available-for-sale securities	(5,794,149		)	(13,572,217		)
Purchases of short-term investments	(11,642,357		)	(2,923,269		)
Purchases of other investments	(3,164,415		)	(1,036,110		)
Proceeds from sales and maturities of available-for-sale securities	16,212,924			10,321,679
Proceeds from sales and maturities of short-term investments	335,084			4,694,893
Proceeds from sales and distributions of other investments	3,167,494			1,050,427
Proceeds from sales of other assets	113,238			26,233
Purchase of subsidiary	(72,600		)	—
Purchase of redeemable noncontrolling interest of subsidiary	—			(515,275		)
Purchases of property	(2,313,052		)	(1,649,412		)
Proceeds from the sale of property	74,395			15,400
Net cash used in investing activities	(3,083,438		)	(3,587,651		)
Financing Activities
Repurchases of common stock	(5,166,846		)	(652,657		)
Exercises of stock options and SARs	54,988			27,100
Distributions to noncontrolling interest	—			(168,057		)
Excess tax benefits related to exercise of stock options and SARs	26,875			15,999
Dividends paid	(477,392		)	(488,127		)
Net cash used in financing activities	(5,562,375		)	(1,265,742		)
Net Increase (Decrease) in Cash and Cash Equivalents	3,464,298			(4,239		)
Cash and Cash Equivalents, Beginning of Period	15,826,515			23,626,761
Cash and Cash Equivalents, End of Period	$	19,290,813		$	23,622,522

5

Consolidated Statements of Cash Flows, continued
	Nine Months Ended September 30,
	2015		2014
Supplemental Disclosures:
Cash Paid During the Year for:
Income tax payments, net	$	2,727,700	$	2,443,000
Non Cash Investing and Financing Activities
Non cash net unrealized loss (gain) on investments, net of deferred tax benefit (provision) of $1,691,188 and $(410,923) for 2015 and 2014, respectively	$	3,253,970	$	(772,074	)

See notes to the Consolidated Financial Statements.

6

INVESTORS TITLE COMPANY

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

Note 1 - Basis of Presentation and Significant Accounting Policies

Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2014 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies.

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with 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 noncontrolling interests in majority-owned insurance agencies, including redeemable noncontrolling interests, are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections 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 of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the quarter ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Allowance for Doubtful Accounts – Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable.

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 concluded that there were no material subsequent events requiring adjustment to or disclosure in its Consolidated Financial Statements.

Recently Issued Accounting Standards – In February 2015, the Financial Accounting Standards Board (“FASB”) updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB updated guidance to defer the effective date of the standard by one year. Early adoption is not permitted, although public entities are permitted to elect to adopt the amendments on the original effective date. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

7

Note 2 - Reserves for Claims

Transactions in the reserves for claims for the nine months ended September 30, 2015 and the year ended December 31, 2014 are summarized as follows:

	September 30, 2015			December 31, 2014
Balance, beginning of period	$	36,677,000		$	35,360,000
Provision, charged to operations	3,621,401			5,229,716
Payments of claims, net of recoveries	(2,401,401		)	(3,912,716		)
Ending balance	$	37,897,000		$	36,677,000

The total reserve for all reported and unreported losses the Company incurred through September 30, 2015 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 claims that have been incurred but not yet reported (“IBNR”). 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 title insurance policies issued through September 30, 2015. Management 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 IBNR, follows:

	September 30, 2015		%	December 31, 2014		%
Known title claims	$	5,276,778	13.9	$	5,364,645	14.6
IBNR	32,620,222		86.1	31,312,355		85.4
Total loss reserves	$	37,897,000	100.0	$	36,677,000	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 Company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.

Note 3 - Earnings Per Common Share and Share Awards

Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company 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 services that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in retained earnings, 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 4,310 and 3,826 for the three months ended September 30, 2015 and 2014, respectively, and 4,923 and 5,238 for the nine months ended September 30, 2015 and 2014, respectively.

8

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months endedSeptember 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income attributable to the Company	$	4,490,962	$	2,594,490	$	10,337,583	$	6,954,526
Weighted average common shares outstanding – Basic	1,967,923		2,028,818		1,995,120		2,033,637
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled)	4,310		3,826		4,923		5,238
Weighted average common shares outstanding – Diluted	1,972,233		2,032,644		2,000,043		2,038,875
Basic earnings per common share	$	2.28	$	1.28	$	5.18	$	3.42
Diluted earnings per common share	$	2.28	$	1.28	$	5.17	$	3.41

There were 7,500 and 3,000 potential shares excluded from the computation of diluted earnings per share for the three months ended September 30, 2015 and 2014, respectively. There were 4,500 and 0 potential shares excluded from the computation of diluted earnings per share for the nine months ended September 30, 2015 and 2014, respectively. These potential shares were anti-dilutive because the underlying share awards had strike prices that exceeded the fair market value.

The Company has adopted employee 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 generally expire in five to ten years from the date of grant and are exercisable and vest: immediately; within one year; or at 10% to 20% per year beginning on the date of grant. All SARs issued to date have been share-settled only.

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, 2014	19,000		$	45.74	3.43	$	669,610
SARs granted	4,500		68.70
SARs exercised	(1,500	)	49.04
Options exercised	(1,000	)	27.21
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of December 31, 2014	21,000		$	51.30	3.64	$	453,510
SARs granted	4,500		73.00
SARs exercised	(2,000	)	47.88
Options exercised	(1,500	)	36.79
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of September 30, 2015	22,000		$	57.04	4.18	$	355,455
Exercisable as of September 30, 2015	19,750		$	55.23	3.90	$	355,005
Unvested as of September 30, 2015	2,250		$	73.00	6.64	$	450

During the second quarters of both 2015 and 2014, the Company issued a total of 4,500 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. 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 assumed for the expected life of the award is based on the U.S. Treasury yield curve at the time of the grant. The weighted average fair values for the SARs issued during 2015 and 2014 were $31.16 and $28.98, respectively.

9

The weighted average fair values for SARs issued during 2015 and 2014 were estimated using the weighted average assumptions shown in the table below:

	2015		2014
Expected life in years	7.0		6.9
Volatility	40.7	%	39.9	%
Interest rate	2.0	%	2.1	%
Yield rate	0.4	%	0.4	%

There was approximately $103,000 and $88,000 of compensation expense relating to SARs or options vesting on or before September 30, 2015 and 2014, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of September 30, 2015, there was approximately $70,000 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 period of approximately 5 months based on weighted average durations.

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

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.

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Title Insurance			All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	32,583,093		$	1,684,088		$	(504,821	)	$	33,762,360
Investment income	1,000,839			140,024			(23,334		)	1,117,529
Net realized loss on investments	(309,874		)	(28,757		)	—			(338,631		)
Total revenues	$	33,274,058		$	1,795,355		$	(528,155	)	$	34,541,258
Operating expenses	27,001,636			1,590,524			(487,400		)	28,104,760
Income before income taxes	$	6,272,422		$	204,831		$	(40,755	)	$	6,436,498
Total assets	$	160,754,846		$	41,790,756		$	—		$	202,545,602

Three Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	27,381,759	$	1,517,927	$	(465,140	)	$	28,434,546
Investment income	956,894		131,435		(23,334		)	1,064,995
Net realized gain on investments	5,781		2,908		—			8,689
Total revenues	$	28,344,434	$	1,652,270	$	(488,474	)	$	29,508,230
Operating expenses	24,940,774		1,416,685		(447,719		)	25,909,740
Income before income taxes	$	3,403,660	$	235,585	$	(40,755	)	$	3,598,490
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

10

Nine Months Ended September 30, 2015	Title Insurance		All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	90,824,523	$	4,803,604		$	(1,331,644	)	$	94,296,483
Investment income	3,061,857		435,200			(70,002		)	3,427,055
Net realized gain (loss) on investments	604,093		(2,757		)	—			601,336
Total revenues	$	94,490,473	$	5,236,047		$	(1,401,646	)	$	98,324,874
Operating expenses	80,214,039		4,798,097			(1,279,381		)	83,732,755
Income before income taxes	$	14,276,434	$	437,950		$	(122,265	)	$	14,592,119
Total assets	$	160,754,846	$	41,790,756		$	—		$	202,545,602

Nine Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	84,257,427	$	4,418,659	$	(1,215,983	)	$	87,460,103
Investment income	2,823,098		377,750		(70,002		)	3,130,846
Net realized gain on investments	536,309		56,599		—			592,908
Total revenues	$	87,616,834	$	4,853,008	$	(1,285,985	)	$	91,183,857
Operating expenses	78,256,239		4,457,289		(1,163,720		)	81,549,808
Income before income taxes	$	9,360,595	$	395,719	$	(122,265	)	$	9,634,049
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

Note 5 – Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement estimated to total $7,731,000 and $7,111,000 as of September 30, 2015 and December 31, 2014, respectively. The executive employee benefits include health insurance, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets. The following sets forth the net periodic benefits cost for the executive benefits for the periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Service cost – benefits earned during the year	$	4,187	$	3,666	$	12,561	$	11,000
Interest cost on the projected benefit obligation	7,693		7,618		23,079		22,854
Amortization of unrecognized prior service cost	1,098		554		3,293		1,663
Amortization of unrecognized losses	878		—		2,635		—
Net periodic benefits costs	$	13,856	$	11,838	$	41,568	$	35,517

Note 6 - Fair Value Measurement

Valuation of Financial Assets and Liabilities

The FASB has established a valuation hierarchy for disclosure of the inputs used to measure fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

11

Debt and Equity Securities

The Level 1 category includes equity securities that are measured at fair value using quoted active market prices.

The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds. Fair value is principally based on market values obtained from a third party pricing service. Factors that are used in determining fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of September 30, 2015 and December 31, 2014, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate bonds are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data.

The Level 3 category only includes the Company’s investments in student loan auction rate securities (“ARS”) because quoted prices are unavailable due to the failure of auctions. The Company’s ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of these securities was $1,000,000 as of September 30, 2015 and December 31, 2014, with approximately 97.0% as of both September 30, 2015 and December 31, 2014, guaranteed by the U.S. Department of Education.

Some of the inputs to ARS valuation are unobservable in the market and are significant – therefore, the Company utilizes another third party pricing service to assist in the determination of the fair market value of these securities. This service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates. The following table summarizes some key assumptions the service used to determine the fair value of the ARS portfolio as of September 30, 2015 and December 31, 2014:

	2015	2014
Cumulative probability of earning maximum rate until maturity	—%	—%
Cumulative probability of principal returned prior to maturity	95.2%	95.2%
Cumulative probability of default at some future point	4.8%	4.8%

Significant increases or decreases in any of the inputs in isolation could result in significant changes to the fair value measurement. Generally, increases in default probabilities and liquidity risk premiums lower the fair market value while increases in principal being returned and earning maximum rates increase fair market values.

Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS. The Company records the fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value. In 2015 and 2014, the difference in the low and high values of the ranges was approximately one to four percent of the carrying value of the Company’s ARS.

The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of September 30, 2015 and December 31, 2014. The table does not include cash on hand and also does not include assets that are measured at historical cost or any basis other than fair value. Level 3 assets are comprised solely of ARS.

12

As of September 30, 2015	Level 1		Level 2		Level 3		Total
Short-term investments	$	13,884,266	$	—	$	—	$	13,884,266
Equity securities:
Common stock	35,135,885		—		—		35,135,885
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		78,912,653		—		78,912,653
Corporate debt securities*	—		18,182,389		939,000		19,121,389
Total	$	49,020,151	$	97,095,042	$	939,000	$	147,054,193

As of December 31, 2014	Level 1		Level 2		Level 3		Total
Short-term investments	$	2,576,993	$	—	$	—	$	2,576,993
Equity securities:
Common stock and nonredeemable preferred stock	39,254,981		—		—		39,254,981
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		85,780,755		—		85,780,755
Corporate debt securities*	—		22,328,435		939,100		23,267,535
Total	$	41,831,974	$	108,109,190	$	939,100	$	150,880,264

*Denotes fair market value obtained from pricing services.

There were no transfers into or out of Levels 1, 2 or 3 during the period.

To help ensure that fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and fair values consistent with ASC 820.

Other Financial Instruments

The Company uses various financial instruments in the normal course of its business. In the measurement of the fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.

In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:

Cash and cash equivalents

The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.

Cost-basis investments

The estimated fair value of cost-basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair value of the underlying entity. These items are included in other investments in the Consolidated Balance Sheets.

13

Accrued dividends and interest

The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets.

The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of September 30, 2015 and December 31, 2014 are presented in the following table:

As of September 30, 2015	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	19,290,813	$	19,290,813	$	19,290,813	$	—	$	—
Cost-basis investments	3,284,868		3,553,562		—		—		3,553,562
Accrued dividends and interest	1,286,710		1,286,710		1,286,710		—		—
Total	$	23,862,391	$	24,131,085	$	20,577,523	$	—	$	3,553,562

As of December 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	15,826,515	$	15,826,515	$	15,826,515	$	—	$	—
Cost-basis investments	2,516,608		2,675,817		—		—		2,675,817
Accrued dividends and interest	1,063,837		1,063,837		1,063,837		—		—
Total	$	19,406,960	$	19,566,169	$	16,890,352	$	—	$	2,675,817

The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the period ended September 30, 2015 and the year ended December 31, 2014:

Changes in fair value during the period ended:	2015			2014
Beginning balance at January 1	$	939,100		$	935,700
Redemptions and sales	—			—
Realized gain – included in net realized (loss) gain on investments	—			—
Unrealized loss – included in other comprehensive (loss) income	(100		)	3,400
Ending balance, net	$	939,000		$	939,100

Certain cost-basis investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of September 30, 2015 and December 31, 2014. The following table summarizes the corresponding estimated fair value hierarchy of such investments at September 30, 2015 and December 31, 2014 and the related impairments recognized:

As of September 30, 2015	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	163,350	$	163,350	$	(233,069	)
Total cost-basis investments			$	—	$	—	$	163,350	$	163,350	$	(233,069	)

As of December 31, 2014	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	22,682	$	22,682	$	(10,062	)
Total cost-basis investments			$	—	$	—	$	22,682	$	22,682	$	(10,062	)

14

Note 7 – Investments in Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:

As of September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	27,857,108	$	1,064,674	$	35,992	$	28,885,790
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,745,393		2,365,492		84,022		50,026,863
Corporate debt securities	17,587,935		619,909		25,455		18,182,389
Auction rate securities	923,967		15,033		—		939,000
Total	$	94,114,403	$	4,065,108	$	145,469	$	98,034,042
Equity securities, available-for-sale, at fair value:
Common stocks	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Total	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Short-term investments:
Money market funds and certificates of deposit	$	13,884,266	$	—	$	—	$	13,884,266
Total	$	13,884,266	$	—	$	—	$	13,884,266

As of December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	35,215,247	$	1,527,794	$	19,542	$	36,723,499
Special revenue issuer obligations of U.S. states, territories and political subdivisions	46,707,033		2,405,725		55,502		49,057,256
Corporate debt securities	21,576,641		823,133		71,339		22,328,435
Auction rate securities	922,129		16,971		—		939,100
Total	$	104,421,050	$	4,773,623	$	146,383	$	109,048,290
Equity securities, available-for-sale, at fair value:
Common stocks and nonredeemable preferred stocks	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Total	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Short-term investments:
Money market funds and certificates of deposit	$	2,576,993	$	—	$	—	$	2,576,993
Total	$	2,576,993	$	—	$	—	$	2,576,993

15

The special revenue category for both periods presented includes at least 50 individual bonds with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at September 30, 2015 were as follows:

	Available-for-Sale
	Amortized Cost		Fair Value
Due in one year or less	$	8,587,887	$	8,741,312
Due after one year through five years	47,565,502		49,628,257
Due five years through ten years	35,968,475		37,206,814
Due after ten years	1,992,539		2,457,659
Total	$	94,114,403	$	98,034,042

Realized gains and losses on investments for the nine months endedSeptember 30 are summarized as follows:

	2015			2014
Gross realized gains:
Corporate debt securities	$	5,417		$	4,286
Common stocks and nonredeemable preferred stocks	1,436,386			1,013,931
Total	$	1,441,803		$	1,018,217
Gross realized losses:
General obligations of U.S. states, territories and political subdivisions	$	(12,319	)	$	—
Special revenue issuer obligations of U.S. states, territories and political subdivisions	(397		)	—
Common stocks and nonredeemable preferred stocks	(39,017		)	(178,047		)
Impairments of bonds, debt and equity securities	(668,904		)	—
Total	$	(720,637	)	$	(178,047	)
Net realized gain from securities	$	721,166		$	840,170
Net realized (losses) gains on other investments:
Impairments of other investments	$	(233,069	)	$	(10,062	)
Gains on other investments	113,239			26,234
Losses on other investments	—			(263,434		)
Total	$	(119,830	)	$	(247,262	)
Net realized gain on investments	$	601,336		$	592,908

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

The following table presents the gross unrealized losses on investment securities and the fair value of the securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2015 and December 31, 2014:

	Less than 12 Months					12 Months or Longer					Total
As of September 30, 2015	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,387,882	$	(35,992	)	$	—	$	—		$	2,387,882	$	(35,992	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	6,995,291		(74,308		)	1,200,232		(9,714		)	8,195,523		(84,022		)
Corporate debt securities	1,472,615		(25,455		)	—		—			1,472,615		(25,455		)
Total fixed income securities	$	10,855,788	$	(135,755	)	$	1,200,232	$	(9,714	)	$	12,056,020	$	(145,469	)
Equity securities	$	4,336,722	$	(630,150	)	$	92,475	$	(94,127	)	$	4,429,197	$	(724,277	)
Total temporarily impaired securities	$	15,192,510	$	(765,905	)	$	1,292,707	$	(103,841	)	$	16,485,217	$	(869,746	)

16

	Less than 12 Months					12 Months or Longer					Total
As of December 31, 2014	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,113,194	$	(19,542	)	$	—	$	—		$	2,113,194	$	(19,542	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	3,946,977		(13,453		)	1,182,390		(42,049		)	5,129,367		(55,502		)
Corporate debt securities	6,924,430		(71,339		)	—		—			6,924,430		(71,339		)
Total fixed income securities	$	12,984,601	$	(104,334	)	$	1,182,390	$	(42,049	)	$	14,166,991	$	(146,383	)
Equity securities	$	930,208	$	(71,669	)	$	141,280	$	(27,562	)	$	1,071,488	$	(99,231	)
Total temporarily impaired securities	$	13,914,809	$	(176,003	)	$	1,323,670	$	(69,611	)	$	15,238,479	$	(245,614	)

As of September 30, 2015, the Company held $12,056,020 in fixed maturity securities with unrealized losses of $145,469. As of December 31, 2014, the Company held $14,166,991 in fixed maturity securities with unrealized losses of $146,383. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

As of September 30, 2015, the Company held $4,429,197 in equity securities with unrealized losses of $724,277. As of December 31, 2014, the Company held $1,071,488 in equity securities with unrealized losses of $99,231. The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 35 and 25 securities had unrealized losses at September 30, 2015 and December 31, 2014, respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. The Company recorded other-than-temporary impairment charges for debt and equity investments in the amount of $668,904 for the nine months ended September 30, 2015 and no other-than-temporary impairment charges for debt and equity investments for the nine months ended September 30, 2014. Other-than-temporary impairment charges are included in net realized (loss) gain on investments in the Consolidated Statements of Income.

Note 8 – Commitments and Contingencies

Legal Proceedings – The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company’s consolidated financial condition or operations.

Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or operations.

Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.

17

Like-Kind Exchanges Proceeds – In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $205,861,000 and $82,477,000 as of September 30, 2015 and December 31, 2014, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as other revenue rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments.

Agency Relationship – On July 1, 2015, Title Resource Group LLC's wholly owned subsidiary, title insurer Texas American Title Company, acquired the assets of ITCOA, LLC, which does business throughout Texas as Independence Title. For the nine months ended September 30, 2015 and the twelve months ended December 31, 2014 and 2013, Independence Title originated 12.2%, 23.6% and 16.4%, respectively, of the net premiums written for the Company. Independence Title is under no legal commitment to remit a minimum amount of premiums to the Company, and could cease doing so at any time. A significant decline in business originated by Independence Title for the Company, whether due to that business being diverted to its new title insurer owner or otherwise, could have a material negative impact on the Company's premiums written. Any reduction in premiums would be largely offset by related reductions in commissions, premium and income taxes, the provision for claims and other operating expenses. The Company did not have any ownership interest in Independence Title before or after the July 1, 2015 acquisition.

Note 9 – Related Party Transactions

The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these limited liability companies. The following table sets forth the approximate values by year found within each financial statement classification:

Financial Statement Classification,	As of September 30, 2015		As of December 31, 2014
Consolidated Balance Sheets
Other investments	$	6,785,000	$	6,014,000
Premiums and fees receivable	$	815,000	$	666,000

Financial Statement Classification,	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Consolidated Statements of Income	2015		2014		2015		2014
Net premiums written	$	3,451,000	$	3,116,000	$	10,436,000	$	8,677,000
Other income	$	716,000	$	447,000	$	2,230,000	$	1,423,000
Commissions to agents	$	2,326,000	$	2,109,000	$	7,176,000	$	5,880,000

Note 10 – Acquisitions

Effective August 1, 2015, a subsidiary of the Company, ITIC, acquired a 20% ownership interest in 1st Investors Title Agency, LLC ("1st Investors") for a purchase price of $72,600. 1st Investors, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. Prior to August 1, 2015, the Company had an ownership interest in 1st Investors of 45%. The Company's Consolidated Financial Statements include the accounts and operations of 1st Investors, based on the Company's resulting 65% ownership interest at September 30, 2015. There were no intangible assets or goodwill recorded as a result of the acquisition.

In January 2012, ITIC entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC (“United”). United, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. On April 2, 2012, ITIC purchased a 70% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining 30% interest at a later date. ITIC purchased the 70% interest for a purchase price of $1,041,250. On May 21, 2014, ITIC purchased the remaining 30% ownership interest in United for an additional $515,275, making United a wholly owned subsidiary of ITC.

18

ITIC's purchase of United was accounted for using the acquisition method required by ASC 805, Business Combinations. Accordingly, the Company recognized the required identifiable intangible assets of United. There was no goodwill recorded as a result of the acquisition. The fair values of intangible assets, all Level 3 inputs, are principally based on values obtained from a third party valuation service. At closing of the initial acquisition, intangible assets included $645,685 relating to a non-compete contract resulting from the acquisition and $836,215 from referral relationships. The non-compete contract is being amortized over a 10-year period using the straight-line method, starting at a future date when the related employment agreement is terminated. The referral relationships are being amortized over a 12-year period using the straight-line method. At September 30, 2015 and December 31, 2014, accumulated amortization of intangible assets was $243,894 and $191,631, respectively. Net intangible assets of $1,238,006 and $1,290,269 are categorized as prepaid expenses and other assets in the Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred that would indicate the carrying amount may not be recoverable, and therefore determined that the intangible assets assigned to United were not impaired at September 30, 2015.

A reconciliation of the noncontrolling interest equity of 1st Investors is presented in the Consolidated Statements of Stockholders' Equity. The following table provides a reconciliation of total redeemable equity of United for the periods ended September 30, 2015 and December 31, 2014:

Changes in carrying value during the period ended:	September 30, 2015		December 31, 2014
Beginning balance at January 1	$	—	$	545,489
Net income attributable to redeemable noncontrolling interest	—		23,523
Distributions to noncontrolling interest	—		(168,057		)
Redeemable noncontrolling interest resulting from subsidiary purchase	—		(515,275		)
Adjustment to retained earnings for purchase of noncontrolling interest	—		114,320
Balance, net	$	—	$	—

Note 11 – Accumulated Other Comprehensive Income

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	11,099,177		$	(75,380	)	$	11,023,797
Other comprehensive loss before reclassifications	(1,549,501		)	—			(1,549,501		)
Amounts reclassified from accumulated other comprehensive income	130,851			1,304			132,155
Net current-period other comprehensive (loss) income	(1,418,650		)	1,304			(1,417,346		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Three Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	12,800,951		$	(47,621	)	$	12,753,330
Other comprehensive loss before reclassifications	(628,914		)	—			(628,914		)
Amounts reclassified from accumulated other comprehensive (loss) income	(4,206		)	366			(3,840		)
Net current-period other comprehensive (loss) income	(633,120		)	366			(632,754		)
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

19

Nine Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	12,934,497		$	(77,988	)	$	12,856,509
Other comprehensive loss before reclassifications	(2,777,909		)	—			(2,777,909		)
Amounts reclassified from accumulated other comprehensive (loss) income	(476,061		)	3,912			(472,149		)
Net current-period other comprehensive (loss) income	(3,253,970		)	3,912			(3,250,058		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Nine Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	11,395,757		$	(48,353	)	$	11,347,404
Other comprehensive income before reclassifications	1,324,166			—			1,324,166
Amounts reclassified from accumulated other comprehensive (loss) income	(552,092		)	1,098			(550,994		)
Net current-period other comprehensive income	772,074			1,098			773,172
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	458,058
Other-than-temporary impairments	(657,755		)
Total	$	(199,697	)	Net realized (loss) gain on investment
Tax	68,846			Provision for Income Taxes
Net of Tax	$	(130,851	)
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,098	)
Unrecognized loss	(878		)
Total	$	(1,976	)	(a)
Tax	672			Provision for Income Taxes
Net of Tax	$	(1,304	)
Reclassifications for the period	$	(132,155	)

20

Three Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	6,534
Other-than-temporary impairments	—
Total	$	6,534		Net realized (loss) gain on investment
Tax	(2,328		)	Provision for Income Taxes
Net of Tax	$	4,206
Amortization related to postretirement benefit plans:
Prior year service cost	$	(554	)
Unrecognized gain (loss)	—
Total	$	(554	)	(a)
Tax	188			Provision for Income Taxes
Net of Tax	$	(366	)
Reclassifications for the period	$	3,840

Nine Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	1,390,070
Other-than-temporary impairments	(668,904		)
Total	$	721,166		Net realized (loss) gain on investment
Tax	(245,105		)	Provision for Income Taxes
Net of Tax	$	476,061
Amortization related to postretirement benefit plans:
Prior year service cost	$	(3,293	)
Unrecognized loss	(2,635		)
Total	$	(5,928	)	(a)
Tax	2,016			Provision for Income Taxes
Net of Tax	$	(3,912	)
Reclassifications for the period	$	472,149

21

Nine Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	840,170
Other-than-temporary impairments	—
Total	$	840,170		Net realized (loss) gain on investment
Tax	(288,078		)	Provision for Income Taxes
Net of Tax	$	552,092
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,663	)
Unrecognized gain (loss)	—
Total	$	(1,663	)	(a)
Tax	565			Provision for Income Taxes
Net of Tax	$	(1,098	)
Reclassifications for the period	$	550,994

(a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization and accretion related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 5.

22

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

The Company's 2014 Annual Report on Form 10-K should be read in conjunction with the following discussion since it contains information which is important for evaluating the Company's operating results and financial condition. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to a number of risks and uncertainties. Actual results may vary.

Overview

Investors Title Company (the "Company") is a holding company that engages primarily in issuing title insurance through two subsidiaries, Investors Title Insurance Company ("ITIC") and National Investors Title Insurance Company ("NITIC"). Total revenues from the title segment accounted for 95.4% of the Company's revenues for the nine months ended September 30, 2015. Through ITIC and NITIC, the Company underwrites land title insurance for owners and mortgagees as a primary insurer. Title insurance protects against loss or damage resulting from title defects that affect real property.

There are two basic types of title insurance policies - one for the mortgage lender and one for the real estate owner. A lender often requires the property owner to purchase a lender's title insurance policy to protect its position as a holder of a mortgage loan, but the lender’s title insurance policy does not protect the property owner. The property owner has to purchase a separate owner’s title insurance policy to protect its investment. When real property is conveyed from one party to another, occasionally there is an undisclosed defect in the title or a mistake or omission in a prior deed, will or mortgage that may give a third party a legal claim against such property. If a covered claim is made against real property, title insurance provides indemnification against insured defects.

The Company issues title insurance policies through its own offices and through a network of agents. Issuing agents are typically real estate attorneys, agent attorneys, independent agents or subsidiaries of community and regional mortgage lending institutions, depending on local customs and regulations and the Company’s marketing strategy in a particular territory. The ability to attract and retain issuing agents is a key determinant of the Company’s growth in title insurance premiums written.

Revenues for this segment primarily result from purchases of new and existing residential and commercial real estate, refinance activity and certain other types of mortgage lending such as home equity lines of credit.

Volume is a factor in the Company’s profitability due to fixed operating costs that are incurred by the Company regardless of title insurance premium volume. The resulting operating leverage tends to amplify the impact of changes in volume on the Company’s profitability. The Company’s profitability also depends, in part, upon its ability to manage its investment portfolio to maximize investment returns and minimize risks such as interest rate changes, defaults and impairments of assets.

The Company’s volume of title insurance premiums is affected by the overall level of residential and commercial real estate activity, which includes sales, mortgage financing and mortgage refinancing. Real estate activity, home sales and mortgage lending are cyclical in nature. In turn, real estate activity is affected by a number of factors, including the availability of mortgage credit, the cost of real estate, consumer confidence, employment and family income levels and general United States economic conditions. Interest rate volatility is also an important factor in the level of residential and commercial real estate activity.

The Company’s title insurance premiums in future periods are likely to fluctuate due to these and other factors which are beyond management’s control.

Historically, the title insurance business tends to be seasonal as well as cyclical. Because home sales are typically strongest in periods of favorable weather, the first calendar quarter tends to have the lowest activity levels, while the spring and summer quarters tend to be more active. Refinance activity is generally less seasonal, but is subject to interest rate fluctuations.

Services other than title insurance provided by operating divisions of the Company that are not required to be reported separately are reported in a category called “All Other.” These other services include those offered by the Company and by its wholly owned subsidiaries, Investors Title Exchange Corporation (“ITEC”), Investors Title Accommodation Corporation (“ITAC”), Investors Trust Company (“Investors Trust”) and Investors Title Management Services, Inc. (“ITMS”).

23

The Company’s exchange services division, ITEC and ITAC, provides customer services in connection with tax-deferred real property exchanges. ITEC serves as a qualified intermediary in like-kind exchanges of real or personal property under Section 1031 of the Internal Revenue Code of 1986, as amended. In its role as qualified intermediary, ITEC coordinates the exchange aspects of the real estate transaction, and its duties include drafting standard exchange documents, holding the exchange funds between the sale of the old property and the purchase of the new property, and accepting the formal identification of the replacement property within the required identification period. ITAC serves as exchange accommodation titleholder in reverse exchanges. An exchange accommodation offers a vehicle for accommodating a reverse exchange when the taxpayer must acquire replacement property before selling the relinquished property.

The Company's trust services division, Investors Trust, provides investment management and trust services to individuals, companies, banks and trusts.

ITMS offers various consulting services to provide clients with the technical expertise to start and successfully operate a title insurance agency.

Business Trends and Recent Conditions

Beginning in 2008, the United States economy experienced a material economic downturn, resulting in a recession. Events leading to the recession were primarily the collapse of the housing market and frozen credit markets, prompting the federal government to take unprecedented monetary and fiscal action in an attempt to slow the economic rate of decline and instill consumer confidence. The economy has been gradually recovering from this downturn with housing values rebounding and the unemployment rate declining.

Current Initiatives

In efforts to stimulate the economy, the Federal Reserve announced in September 2012 Quantitative Easing, “QE3,” in which it would purchase mortgage-backed securities and longer-term Treasury securities. Through QE3, the Federal Reserve initially purchased mortgage-backed securities at a rate of $40 billion per month and longer-term Treasury securities at a rate of $45 billion per month. Beginning in 2014, the Federal Open Market Committee ("FOMC") of the Federal Reserve steadily reduced the purchase of securities, and concluded the QE3 program at the end of October 2014.

The FOMC also issues disclosures on a periodic basis that include projections of the federal funds rate and expected actions. At the September 2015 meeting, the FOMC reaffirmed its intent to keep the federal funds rate exceptionally low, between 0% and 0.25%, so long as progress is made toward its employment and inflation objectives. Federal Reserve Chairwoman Janet Yellen remarked in a press conference after the September 2015 meeting that an increase in the federal funds rate is likely to come later in 2015; however, any rate increases are expected to be gradual.

On October 20, 2014, the Federal Housing Finance Agency ("FHFA"), which regulates the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), announced that Fannie Mae and Freddie Mac were negotiating guidelines with mortgage lenders that resulted in less strict lending requirements and lower barriers to mortgage loans for borrowers who are seeking access to home loans. The FHFA noted in its announcement that it intended to clarify the rules that allow Fannie Mae and Freddie Mac to require mortgage lenders to repurchase troubled loans. The FHFA also sought to increase the supply of credit available, particularly to creditworthy lower and middle-income families, by collaborating with mortgage lenders to provide guidelines for mortgage loans with down payments as low as three percent. In December 2014, both Fannie Mae and Freddie Mac officially approved ninety-seven percent loan-to-value products (three percent down payment mortgages). The Fannie Mae program is targeted to first-time home buyers and became available to lenders in December 2014. The Freddie Mac program became available to lenders on March 23, 2015 and is available to both first-time home buyers and other qualified borrowers with limited down payment savings.

In an effort to expand home ownership for lower-income buyers, the Federal Housing Authority (“FHA”) announced in January 2015 that it would cut its rates on mortgage insurance premiums. Mortgage insurance premium rates for 30-year FHA insured mortgages with less than a 5% down payment decreased from 1.35% to 0.85%. Mortgage insurance premium rates for 30-year FHA insured mortgages with more than a 5% down payment decreased from 1.30% to 0.80%. The new rates took effect on January 26, 2015 and will not apply to borrowers with existing mortgages, unless refinanced, or to 15-year mortgages.

24

Regulation and Reform

In 2008, the federal government took control of Fannie Mae and Freddie Mac in an effort to keep these government sponsored entities from failing. The primary functions of Fannie Mae and Freddie Mac are to provide liquidity to the nation's mortgage finance system by purchasing mortgages on the secondary market, pooling them and selling them as mortgage-backed securities. In order to securitize, Fannie Mae and Freddie Mac typically require the purchase of title insurance for loans they acquire. Since the federal takeover, there have been various discussions and proposals regarding their reform. Changes to these entities could impact the entire mortgage loan process and, as a result, could affect the demand for title insurance. The timing and results of any reforms are currently unknown; however, any changes to these entities could affect the Company and its results of operations.

On November 20, 2013, the Consumer Financial Protection Bureau (“CFPB”), which enforces the Real Estate Settlement Procedures Act (“RESPA”), the primary federal regulatory guidance covering the real estate settlement industry, released a final rule to integrate mortgage disclosures under the RESPA and the Truth in Lending Act (“TILA”). The final rule went into effect October 3, 2015. Under this rule, the early disclosure forms required by TILA and the good faith estimate required by RESPA have been combined into one form, titled the Loan Estimate. The final disclosure required by TILA and the HUD-1 settlement statement required by RESPA have been combined into one form, titled the Closing Disclosure. The Company has been actively preparing for the impact this rule will have on both direct and agency operations in terms of processes and procedures, systems and compliance costs, and does not expect it to have a material impact on the Company's financial position and results of operations.

The CFPB, Office of the Comptroller of Currency and the Federal Reserve have issued memorandums to banks that have heightened those agencies' focus on vetting third party providers and may affect the Company's agents and approved providers.  Further proposals to change regulations governing insurance holding companies and the title insurance industry are often introduced in Congress, in state legislatures and before various insurance regulatory agencies. Although the Company regularly monitors such proposals, the likelihood and timing of passage of any such regulation, and the possible effects of any such regulation on the Company and its subsidiaries, cannot be determined at this time.

Real Estate Environment

Overall, the economy is expanding and there has been a steady reduction in unemployment. The Mortgage Bankers Association's (“MBA”) September 2015 Economic and Mortgage Finance Commentary predicts 2015 overall economic growth of approximately 2.4% and a decline in the unemployment rate to 5.0% by the end of 2015. While recovery in the housing sector remains slow, purchase applications and refinance transactions are both higher compared with the prior year, primarily a result of the economic growth and improved employment conditions.

The MBA September 18, 2015 Mortgage Finance Forecast (“MBA Forecast”) projects 2015 purchase activity to increase 25.5% to $801 billion and refinance activity to increase 21.9% to $590 billion, resulting in an increase in total mortgage originations of 24.0% to $1,391 billion, all from 2014 levels. In 2014, refinance activity accounted for 43.1% of all mortgage originations and is projected to represent 42.4% of all mortgage originations in 2015.

According to data published by Freddie Mac, the average 30-year fixed mortgage interest rate in the United States was 3.8% and 4.2% for the nine months ended September 30, 2015 and 2014, respectively. Refinancing activity is expected to be higher in 2015 as a result of lower mortgage interest rates in the current year. According to the MBA Forecast, interest rates are projected to climb to 4.2% by the fourth quarter of 2015.

Historically, activity in real estate markets has varied over the course of market cycles by geographic region and in response to evolving economic factors. Operating results can vary from year to year based on cyclical market conditions and do not necessarily indicate the Company's future operating results and cash flows.

Critical Accounting Estimates and Policies

The preparation of the Company's Consolidated Financial Statements requires management to make estimates and judgments that affect the reported amounts of certain assets, liabilities, revenues, expenses and related disclosures regarding contingencies and commitments. Actual results could differ from these estimates. During the nine months ended September 30, 2015, the Company did not make any material changes to its critical accounting policies as previously disclosed in Management's Discussion and Analysis in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission.

25

Results of Operations

The following table presents certain income statement data for the three and nine months endedSeptember 30, 2015 and 2014:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015		2014
Revenues:
Net premiums written	$	30,945,532		$	26,356,835	$	86,372,154	$	81,115,940
Investment income - interest and dividends	1,117,529			1,064,995		3,427,055		3,130,846
Net realized (loss) gain on investments	(338,631		)	8,689		601,336		592,908
Other	2,816,828			2,077,711		7,924,329		6,344,163
Total Revenues	34,541,258			29,508,230		98,324,874		91,183,857
Operating Expenses:
Commissions to agents	16,898,323			14,440,264		48,393,553		48,242,923
Provision for claims	703,979			1,507,814		3,621,401		4,177,478
Salaries, employee benefits and payroll taxes	6,957,874			6,609,425		21,101,955		19,250,116
Office occupancy and operations	1,342,288			1,257,009		4,089,806		3,683,980
Business development	568,189			552,215		1,633,358		1,581,872
Filing fees, franchise and local taxes	134,880			233,079		572,621		648,022
Premium and retaliatory taxes	573,336			491,927		1,684,674		1,332,492
Professional and contract labor fees	661,879			621,305		1,926,469		1,976,272
Other	264,012			196,702		708,918		656,653
Total Operating Expenses	28,104,760			25,909,740		83,732,755		81,549,808
Income before Income Taxes	6,436,498			3,598,490		14,592,119		9,634,049
Provision for Income Taxes	1,941,000			1,004,000		4,250,000		2,656,000
Net Income Attributable to the Company	$	4,490,962		$	2,594,490	$	10,337,583	$	6,954,526

Insurance and Other Services Revenues

Insurance and other services revenues include net premiums written plus other fee income, trust income, management services income and exchange services income. Investment income and realized investment gains and losses are not included in insurance and other services revenues and are discussed separately under “Investment Related Revenues” below.

Title Orders: Title orders issued increased 15.6% in the first nine months of 2015 to 175,890 compared with 152,103 title orders in the same period in 2014. The increase in title orders from 2014 is primarily attributable to an increase in the number of purchase and refinance transactions. Premiums written did not move proportionally with title orders due to an increasing proportion of refinance transactions as well as the mix of premiums written by state, as rates vary by state. Refinance transactions typically have lower premium rates than purchase transactions.

Title insurance companies typically issue title insurance policies directly through home and branch offices or through title agencies. Following is a breakdown of net premiums generated by home and branch offices and agency operations for the three and nine months ended September 30, 2015 and 2014:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015		%		2014		%		2015		%		2014		%
Home and Branch	$	7,967,826	25.7	%	$	6,815,125	25.9	%	$	21,281,363	24.6	%	$	17,922,166	22.1	%
Agency	22,977,706		74.3	%	19,541,710		74.1	%	65,090,791		75.4	%	63,193,774		77.9	%
Total	$	30,945,532	100.0	%	$	26,356,835	100.0	%	$	86,372,154	100.0	%	$	81,115,940	100.0	%

26

Home and Branch Office Net Premiums: In the Company's home and branch operations, the Company issues the title insurance policy and retains the entire premium, as no commissions are paid in connection with these policies. Net premiums written from home and branch operations increased 16.9% and 18.7% for the three and nine months endedSeptember 30, 2015, respectively, compared with the same prior year periods. The increase in net premiums was primarily attributable to increases in both refinance and purchase activity. Refinance activity increased as mortgage interest rates were lower from prior year levels. Premiums from purchase transactions increased as well, due to both increased volume from favorable interest rates and overall economic conditions, and increases in average home prices. All of the Company's home office operations and the majority of its branch offices are located in North Carolina; as a result, the home and branch office net premiums written are primarily for North Carolina title insurance policies.

Agency Net Premiums: When a policy is written through a title agency, the premium is shared between the agency and the underwriter. Total premiums include an estimate of premiums for policies that have been issued, but not reported as of the balance sheet date. To determine the estimated premiums, the Company uses historical experience, as well as other factors, to make certain assumptions about the average elapsed time between the policy effective date and the date the policies are reported. From time to time, the Company adjusts the inputs to the estimation process as agents report transactions and new information becomes available. In addition to estimating revenues, the Company also estimates and accrues agent commissions, claims provision, premium taxes, income taxes, and other expenses associated with the estimated revenues that have been accrued. The Company reflects any adjustments to the accruals in the result of operations in the period in which new information becomes available.

Agency net premiums written increased 17.6% and 3.0% for the three and nine months endedSeptember 30, 2015, respectively, compared with prior year periods. The increases in agency premiums were primarily attributable to higher average real estate prices and higher levels of real estate activity in most states in which the Company operates, partially offset by a decrease in the amount of premiums from one agent in the Texas market. Agency net premiums in Texas were down primarily due to reductions in estimated unreported agency premiums and lower levels of purchase transactions.

Agency Relationship: The Company receives a significant percentage of its Texas net premiums written from a single title agent, which was recently acquired by another title insurer. For further details, refer to Note 8 to the Notes to Consolidated Financial Statements herein.

Following is a schedule of net premiums written for the three and nine months endedSeptember 30, 2015 and 2014 in select states in which the Company's two insurance subsidiaries, ITIC and NITIC, currently write insurance:

	Three Months Ended September 30,						Nine Months Ended September 30,
State	2015			2014			2015			2014
North Carolina	$	10,320,737		$	8,717,897		$	27,618,674		$	23,375,703
Texas	6,460,351			6,900,659			21,047,559			29,874,149
South Carolina	3,280,208			2,620,089			8,344,775			5,774,293
Georgia	2,479,942			1,293,562			5,551,143			3,218,600
Virginia	1,558,932			1,361,935			4,235,041			3,570,595
Michigan	1,182,747			885,508			3,500,426			2,831,820
All Others	5,716,133			4,621,412			16,198,055			12,547,606
Premiums	30,999,050			26,401,062			86,495,673			81,192,766
Reinsurance Assumed	—			6,895			23,195			35,367
Reinsurance Ceded	(53,518		)	(51,122		)	(146,714		)	(112,193		)
Net Premiums Written	$	30,945,532		$	26,356,835		$	86,372,154		$	81,115,940

Other Revenues

Other revenues primarily include other fee income, trust income, management services income, exchange services income, and income related to the Company’s equity method investments. Other revenues were $2,816,828 and $7,924,329 for the three and nine months ended September 30, 2015, respectively, compared with $2,077,711 and $6,344,163 for the prior year periods. The increases for the three and nine months ended September 30, 2015, primarily related to increases in earnings of unconsolidated affiliates, fee income and exchange services revenues, partially offset by a decline in income from trust and investment management services.

Investment Related Revenues

Investment income and realized gains and losses from investments are included in investment related revenues.

27

Investment Income

The Company derives a substantial portion of its income from investments in municipal and corporate bonds and equity securities. The Company's title insurance subsidiaries are required by statute to maintain minimum levels of investments in order to protect the interests of policyholders.

In formulating its investment strategy, the Company has emphasized after-tax income. The Company’s investments are primarily in bonds and, to a lesser extent, equity securities. The effective maturity of the majority of the bonds is within 10 years. The Company’s invested assets are managed to fund its obligations and evaluated to ensure long-term stability of capital accounts.

As the Company generates cash from operations, it is invested in accordance with the Company’s investment policy and corporate goals. The Company’s investment policy has been designed to balance multiple goals, including the assurance of a stable source of income from interest and dividends, the preservation of principal and the provision of liquidity sufficient to meet insurance underwriting and other obligations as they become payable in the future. Securities purchased may include a combination of taxable bonds, tax-exempt bonds and equity securities. The Company strives to maintain a high quality investment portfolio. Interest and investment income levels are primarily a function of general market performance, interest rates and the amount of cash available for investment.

Investment income was $1,117,529 and $3,427,055 for the three and nine months endedSeptember 30, 2015, respectively, compared with $1,064,995 and $3,130,846 for the same periods in 2014. The increase in investment income for the three and nine months endedSeptember 30, 2015 was due primarily to higher levels of interest and dividends earned in conjunction with a higher average portfolio balance for both fixed maturities and equity securities during the current year periods.

Net Realized (Loss) Gain on Investments

Dispositions of equity securities at a realized gain or loss reflect such factors as industry sector allocation decisions, ongoing assessments of issuers' business prospects and tax planning considerations. Additionally, realized investment gains or losses are affected by assessments of securities' valuation for other-than-temporary impairment. As a result of the interaction of these factors and considerations, the net realized investment gain or loss can vary significantly from period to period.

The net realized (loss) gain on investments was $(338,631) and $601,336 for the three and nine months endedSeptember 30, 2015, respectively, compared with $8,689 and $592,908 for the same periods in 2014. The net realized loss on investments for the three months ended September 30, 2015 includes impairment charges of $890,824 on certain investments and other assets that were deemed to be other-than-temporarily impaired, offset by a net realized gain on the sales of investments and other assets of $552,193. There were no impairments for the three months ended September 30, 2014. The 2015 year-to-date gain includes impairment charges of $901,973 on certain investments and other assets that were deemed to be other-than-temporarily impaired, offset by a net realized gain on the sales of investments and other assets of $1,503,309. The 2014 year-to-date gain includes impairment charges of $10,062 on certain investments that were deemed to be other-than-temporarily impaired, offset by a net realized gain on the sales of investments and other assets of $602,970. Management believes unrealized losses on remaining fixed income and equity securities at September 30, 2015 are temporary in nature.

The securities in the Company's portfolio are subject to economic conditions and market risks. The Company considers relevant facts and circumstances in evaluating whether a credit or interest-related impairment of a security is other-than-temporary. Relevant facts and circumstances include the extent and length of time the fair value of an investment has been below cost.

There are a number of risks and uncertainties inherent in the process of monitoring impairments and determining if impairments are other-than-temporary. These risks and uncertainties include the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated, the risk that the Company's assessment of an issuer's ability to meet all of its contractual obligations will change based on changes in the characteristics of that issuer, the risk that information obtained by the Company or changes in other facts and circumstances leads management to change its intent to hold the equity security until it recovers in value or its intent to sell the debt security, and the risk that management is making decisions based on misstated information in the financial statements provided by issuers.

28

Expenses

The Company's operating expenses consist primarily of commissions to agents, salaries, employee benefits and payroll taxes, office occupancy and operations and provision for claims. Operating expenses increased 8.5% and 2.7% for the three and nine months endedSeptember 30, 2015, respectively, compared with the same periods in 2014. For the three months ended September 30, 2015, expenses increased primarily due to an increase in commissions, partially offset by a decrease in the provision for claims. For the nine months ended September 30, 2015, expenses increased primarily due to normal inflationary increases in compensation and benefit costs and higher staffing levels to support ongoing software development initiatives.

Following is a summary of the Company's operating expenses for the three and nine months endedSeptember 30, 2015 and 2014. Inter-segment eliminations have been netted; therefore, the individual segment amounts will not agree to Note 4 in the accompanying Consolidated Financial Statements.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015		%		2014		%		2015		%		2014		%
Title Insurance	$	26,529,660	94.4	%	$	24,513,591	94.6	%	$	78,992,688	94.3	%	$	77,153,327	94.6	%
All Other	1,575,100		5.6	%	1,396,149		5.4	%	4,740,067		5.7	%	4,396,481		5.4	%
Total	$	28,104,760	100.0	%	$	25,909,740	100.0	%	$	83,732,755	100.0	%	$	81,549,808	100.0	%

On a combined basis, after-tax profit margins were 13.0% and 10.5% for the three and nine months endedSeptember 30, 2015, respectively, and 8.8% and 7.6% for the three and nine months endedSeptember 30, 2014, respectively. The Company continually strives to enhance its competitive strengths and market position, including ongoing initiatives to reduce its operating expenses.

Commissions: Agent commissions represent the portion of premiums retained by agents pursuant to the terms of their respective agency contracts. Commissions to agents increased 17.0% and 0.3% for the three and nine months endedSeptember 30, 2015, respectively, compared with prior year periods. Commission expense as a percentage of net premiums written by agents was 73.5% and 74.3% for the three and nine months endedSeptember 30, 2015, respectively, compared with 73.9% and 76.3% for the same periods in 2014. Commission expense was flat versus the prior year period even as premiums grew, as a larger proportion of premiums originated in markets with lower average commission rates. Commission rates may vary due to geographic locations, different levels of premium rate structures and state regulations.

Provision for Claims: The provision for claims as a percentage of net premiums written was 2.3% and 4.2% for the three and nine months endedSeptember 30, 2015, respectively, compared with 5.7% and 5.2% for the same periods in 2014. For the three and nine months ended September 30, 2015, the decrease in the provision for claims primarily related to favorable experience in recent policy years.

The decrease in the loss provision rate for the nine months ended September 30, 2015 from the 2014 level resulted in approximately $827,000 less in reserves than would have been recorded at the higher 2014 level. Loss provision ratios are subject to variability and are reviewed and adjusted as experience develops.

Title claims are typically reported and paid within the first several years of policy issuance. The provision for claims reflects actual payments of claims, net of recovery amounts, plus adjustments to the specific and incurred but not reported claims reserves, the latter of which are actuarially determined based on historical claims experience. Actual payments of claims, net of recoveries, were $2,401,401 and $3,285,478 for the nine months ended September 30, 2015 and 2014, respectively.

Reserves for Claims:  At September 30, 2015, the total reserve for claims was $37,897,000. Of that total, approximately $5,277,000 was reserved for specific claims, and approximately $32,620,000 was reserved for claims for which the Company had no notice.  Because of the uncertainty of future claims, changes in economic conditions and the fact that claims may not materialize for several years, reserve estimates are subject to variability.

Changes from prior periods in the expected liability for claims reflect the uncertainty of the claims environment, as well as the limited predictive power of historical data. The Company continually updates and refines its reserve estimates as current experience develops and credible data emerges. Such data includes payments on claims closed during the quarter, new details that emerge on still-open cases that cause claims adjusters to increase or decrease the case reserves and the impact that these types of changes have on the Company's total loss provision. Adjustments may be required as new information develops which often varies from past experience.

29

Salaries, Employee Benefits and Payroll Taxes: Personnel costs include base salaries, benefits and payroll taxes, and bonuses paid to employees. Salaries, employee benefits and payroll taxes were $6,957,874 and $21,101,955 for the three and nine months endedSeptember 30, 2015, respectively, compared with $6,609,425 and $19,250,116 for the prior year periods. On a consolidated basis, salaries, employee benefits and payroll taxes as a percentage of total revenues were 20.1% and 21.5% for the three and nine months endedSeptember 30, 2015, respectively, compared with 22.4% and 21.1% for the prior year periods. The increases in expenses for the three and nine months ended September 30, 2015 primarily relate to normal inflationary increases in compensation and benefit costs, and higher staffing levels to support ongoing software development activities.

Office Occupancy and Operations: Office occupancy and operations expenses primarily include office rent and utilities, depreciation, maintenance, telecommunications and insurance expenses. Office occupancy and operations expenses were $1,342,288 and $4,089,806 for the three and nine months endedSeptember 30, 2015, respectively, compared with $1,257,009 and $3,683,980 for the prior year periods. As a percentage of total revenues, office occupancy and operations expenses were 3.9% and 4.2% for the three and nine months endedSeptember 30, 2015, respectively, compared with 4.3% and 4.0% for the prior year periods. The increases in expenses in 2015 primarily related to increases in printing, maintenance, contract services and depreciation expenses.

Business Development: Business development expenses primarily include marketing and travel-related expenses. Business development expenses were $568,189 and $1,633,358 for the three and nine months endedSeptember 30, 2015, respectively, compared with $552,215 and $1,581,872 for the prior year periods. Business development expenses increased 2.9% and 3.3% for the three and nine months endedSeptember 30, 2015, respectively, compared with the prior year periods. The increase for the three and nine months ended September 30, 2015 primarily related to increased marketing expenses.

Filing Fees, Franchise and Local Taxes: Filing fees, franchise and local tax expenses include insurance filing and licensing fees, franchise taxes, excise taxes, and local taxes. Filing fees, franchise and local tax expenses were $134,880 and $572,621 for the three and nine months endedSeptember 30, 2015, respectively, compared with $233,079 and $648,022 for the prior year periods.

Premium and Retaliatory Taxes: Title insurance companies are generally not subject to state income or franchise taxes. However, in most states they are subject to premium and retaliatory taxes, as defined by statute. Premium tax rates vary from state to state; accordingly, the total premium tax incurred is dependent upon the geographical mix of insurance revenues. Premium and retaliatory taxes as a percentage of net premiums written were 1.9% and 2.0% for the three and nine months endedSeptember 30, 2015, respectively, compared with 1.9% and 1.6% for the prior year periods.

Professional and Contract Labor Fees: Professional and contract labor fees were $661,879 and $1,926,469 for the three and nine months endedSeptember 30, 2015, respectively, compared with $621,305 and $1,976,272 for the prior year periods. The increase for the three months ended September 30, 2015 was primarily attributable to an increase in legal and accounting fees, partially offset by a decrease in consulting fees associated with the Company's ongoing software initiatives. The decrease for the nine months ended September 30, 2015 was primarily attributable to a decrease in consulting fees associated with the Company's ongoing software initiatives, partially offset by an increase in legal and accounting fees.

Other Expenses: Other operating expenses primarily include miscellaneous operating expenses of the trust division and other miscellaneous expenses of the title segment. These amounts typically fluctuate in relation to transaction volume of the title segment and the trust division. Other expenses were $708,918 for the nine months ended September 30, 2015 compared with $656,653 for the prior year period.

Income Taxes

The provision for income taxes was $1,941,000 and $4,250,000 for the three and nine months endedSeptember 30, 2015, respectively, compared with $1,004,000 and $2,656,000 for the same prior year periods. Income tax expense as a percentage of earnings before income taxes was 30.2% and 29.1% for the three and nine months endedSeptember 30, 2015, respectively, compared with 27.9% and 27.6% for the same prior periods. The increase in the effective rate for 2015 compared with 2014 was primarily due to a higher proportion of taxable to tax-exempt income. The effective income tax rate for both 2015 and 2014 was below the U.S. federal statutory income tax rate of 34%, primarily due to the effect of tax-exempt income. Tax-exempt income lowers the effective tax rate.

Management believes it is more likely than not that the tax benefits associated with recognized impairment and unrecognized losses recorded through September 30, 2015 will be realized. However, this judgment could be impacted by further market fluctuations.

30

Liquidity and Capital Resources

The Company's current cash requirements include general operating expenses, income taxes, capital expenditures, dividends on its common stock and repurchases of its common stock. Cash flows from operations have also historically been the primary source of financing for expanding operations, whether through organic growth or outside investments.

The Company evaluates nonorganic growth opportunities, such as mergers and acquisitions, from time to time in the ordinary course of business. Because of the episodic nature of these events, related incremental liquidity and capital resource needs can be difficult to predict.

The Company’s operating results and cash flows are heavily dependent on the real estate market. The Company’s business has certain fixed costs such as personnel; therefore, changes in the real estate market are monitored closely, and operating expenses such as staffing levels are managed and adjusted accordingly. The Company believes that its significant working capital position and management of operating expenses will aid its ability to manage cash resources through fluctuations in the real estate market.

Cash Flows: Net cash flows provided by operating activities were $12,110,111 and $4,849,154 for the nine months ended September 30, 2015 and 2014, respectively. Cash flows from operating activities increased in 2015 from 2014, primarily due to an increase in net income, the timing of payable disbursements and taxes recoverable, and lower claim payments, partially offset by increases in earnings from other investments and receivables.

Cash flows from non-operating activities have historically consisted of purchases and proceeds from investing activities, repurchases of common stock and the payment of dividends. In 2015, the Company had higher levels of investment purchase activity, proceeds from investing activities and repurchases of common stock compared with the prior year.

The Company maintains a high degree of liquidity within its investment portfolio, classified as available for sale, in the form of cash, short-term investments and other readily marketable securities. As of September 30, 2015, the Company held cash and cash equivalents of $19,290,813, short-term investments of $13,884,266, fixed maturity securities of $98,034,042 and equity securities of $35,135,885. The net effect of all activities on total cash and cash equivalents was an increase of $3,464,298 in 2015 and a decrease of $4,239 in 2014.

Capital Resources: The amount of capital resources the Company maintains is influenced by state regulation, the need to maintain favorable ratings from third party rating agencies and other marketing and operational considerations.

The Company's significant sources of funds are dividends and distributions from its subsidiaries, primarily its two title insurance subsidiaries. Cash is received from its subsidiaries in the form of dividends and as reimbursements for operating and other administrative expenses that it incurs. The reimbursements are executed within the guidelines of management agreements between the Company and its subsidiaries.

The ability of the Company's title insurance subsidiaries to pay dividends to the Company is subject to state regulation from their respective states of domicile. Each state regulates the extent to which title underwriters can pay dividends or make distributions and requires prior regulatory approval of the payment of dividends and other intercompany transfers. The maximum dividend permitted by law is not necessarily indicative of an insurer’s actual ability to pay dividends. Depending on regulatory conditions, the Company may in the future need to retain cash in its title insurance subsidiaries in order to maintain their statutory capital position. As of September 30, 2015, both ITIC and NTIIC met the minimum capital, surplus and reserve requirements for each state in which they are licensed.

Historically, the Company's geographical focus has been concentrated in states with premium rates that are typically lower than the national average, contributing to the need to maintain higher levels of capital to accommodate risk exposure beyond the industry average.

While state regulation and the need to cover risks may set a minimum level for capital requirements, other factors necessitate maintaining capital resources in excess of the required minimum amounts. For instance, the Company’s capital resources help it maintain high ratings from insurance company rating agencies. Superior ratings strengthen the Company's ability to compete with larger, well known title insurers with national footprints.

A strong financial position provides necessary flexibility to fund potential acquisition activity, to invest in the Company's core business, and to minimize the financial impact of potential adverse developments. Adverse developments that generally require additional capital include adverse financial results, changes in statutory accounting requirements by regulators, reserve charges, investment losses or costs incurred to adopt to a changing regulatory environment, including costs related to emerging CFPB regulation of the real estate industry.

31

Due to the Company’s historical ability to consistently generate positive cash flows from its consolidated operations and investment income, management believes that funds generated from operations will enable the Company to adequately meet its current operating needs for the foreseeable future. However, there can be no assurance that future experience will be similar to historical experience, since it is influenced by such factors as the interest rate environment, real estate activity, the Company’s claims-paying ability and its financial strength ratings. In addition to operational and investment considerations, taking advantage of opportunistic external growth opportunities may necessitate obtaining additional capital resources. The Company is unaware of any trend that is likely to result in material adverse liquidity changes, but continually assesses its capital allocation strategy, including decisions relating to repurchasing the Company’s stock and/or conserving cash.

Purchase of Company Stock: On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company's repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval. Unless terminated earlier by resolution of the Board of Directors, the plan will expire when all shares authorized for purchase under the plan have been purchased. Pursuant to the Company’s ongoing purchase program, the Company purchased 72,044 shares for the nine months ended September 30, 2015 and 9,824 for the same period in 2014 at an average per share price of $71.72 and $66.43, respectively. The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and alternative uses for such cash.

Capital Expenditures: Capital Expenditures were approximately $2,313,000 through September 30, 2015. In 2015, the Company has plans for various capital improvement projects, including increased investment in a number of technology and system development initiatives and hardware purchases which are anticipated to be funded via cash flows from operations. All material anticipated capital expenditures are subject to periodic review and revision and may vary depending on a number of factors.

Off-Balance Sheet Arrangements

As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.

In addition, in administering tax-deferred property exchanges, ITEC serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. ITAC serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverses exchange property held by the Company for the purpose of completing such transactions totaled approximately $205,861,000 and $82,477,000 as of September 30, 2015 and December 31, 2014, respectively. These exchange deposits are held at third-party financial institutions. These amounts are not considered assets of the Company for accounting purposes and, therefore, are excluded from the accompanying Consolidated Balance Sheets. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as exchange services revenue, rather than investment income. The Company remains contingently liable to customers for the transfers of property, disbursements of proceeds, and the return on the proceeds at the agreed upon rate.

External assets under management of Investors Trust Company are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets.

It is not the general practice of the Company to enter into off-balance sheet arrangements or issue guarantees to third parties. The Company does not have any material source of liquidity or financing that involves off-balance sheet arrangements. Other than items noted above, off-balance sheet arrangements are generally limited to the future payments under noncancelable operating leases and payments due under various agreements with third party service providers.

Recent Accounting Standards

For a description of recent accounting pronouncements, please refer to Note 1 to the Notes to Consolidated Financial Statements herein.

32

Safe Harbor for Forward-Looking Statements

This Quarterly Report on Form 10-Q, as well as information included in future filings by the Company with the Securities and Exchange Commission and information contained in written material, press releases and oral statements issued by or on behalf of the Company, contains, or may contain, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that reflect management’s current outlook for future periods. These statements may be identified by the use of words such as “plan,” “expect,” “aim,” “believe,” “project,” “anticipate,” “intend,” “estimate,” “should,” “could,” “would” and other expressions that indicate future events and trends. All statements that address expectations or projections about the future, including statements about the Company’s strategy for growth, product and service development, market share position, claims, expenditures, financial results and cash requirements, are forward-looking statements. Without limitation, projected developments in mortgage interest rates and the overall economic environment set forth in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Business Trends and Recent Conditions” constitute forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events that are subject to a number of risks and uncertainties.

Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors, including, but not limited to, the following:

• the level of real estate transactions, the level of mortgage origination volumes (including refinancing) and changes to the insurance requirements of the participants in the secondary mortgage market, and the effect of these factors on the demand for title insurance;

• changes in general economic, business, and political conditions, including the performance of the financial and real estate markets;

• the possible inadequacy of provisions for claims to cover actual claim losses;

• the incidence of fraud-related losses;

• unanticipated adverse changes in securities markets, including interest rates, could result in material losses to the Company’s investments;

• significant competition that the Company’s operating subsidiaries face, including the Company’s ability to develop and offer products and services that meet changing industry standards in a timely and cost-effective manner and expansion into new geographic locations;

• the Company's reliance upon the Texas and North Carolina markets for a significant portion of its premiums;

• the Company's receipt of a significant percentage of its net premiums written from a single title agent, which was recently acquired by another title insurer;

• compliance with government regulation, including pricing regulation, and significant changes to applicable regulations or in their application by regulators;

• the impact of governmental oversight of service provider’s compliance with federal consumer financial laws, including title insurance agents;

• possible downgrades from a rating agency, which could result in a loss of underwriting business;

• the inability of the Company to manage, develop and implement technological advancements and prevent system interruptions or unauthorized system intrusions;

• statutory requirements applicable to the Company’s insurance subsidiaries that require them to maintain minimum levels of capital, surplus and reserves and restrict the amount of dividends that they may pay to the Company without prior regulatory approval;

• the desirability to maintain capital above statutory minimums for competitive, marketing and other reasons;

• heightened regulatory scrutiny and investigations of the title insurance industry;

• the Company’s dependence on key management and marketing personnel, the loss of whom could have a material adverse effect on the Company’s business;

• reform of government-sponsored entities that could adversely impact the Company;

• policies and procedures for the mitigation of risks that may be insufficient to prevent losses;

• the shareholder rights plan which could discourage transactions involving actual or potential changes of control; and

• other risks detailed elsewhere in this document and in the Company’s other filings with the SEC.

These and other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission. For more details on factors that could affect expectations, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company is not under any obligation (and expressly disclaims any such obligation) and does not undertake to update or alter any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. You should consider the possibility that actual results may differ materially from our forward-looking statements.

33

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The Company’s primary exposure to market risk relates to interest rate risk associated with certain financial instruments. Although the Company monitors its risk associated with fluctuations in interest rates, it does not currently use derivative financial instruments to hedge these risks.

No material changes in the Company’s market risk or market strategy occurred during the quarter ended September 30, 2015.

Item 4.  Controls and Procedures

Disclosure Controls and Procedures

The Company's disclosure controls and procedures are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed in such reports is accumulated and communicated to the Company’s management as appropriate to allow timely decisions regarding required disclosure.

No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system of controls are met, and no evaluation of controls can provide absolute assurance that the system of controls has operated effectively in all cases. The Company’s disclosure controls and procedures, however, are designed to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

Pursuant to Rule 13a-15(b) under the Exchange Act, an evaluation was performed under the supervision and with the participation of the Company's management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of September 30, 2015 to provide reasonable assurance that the objectives of disclosure controls and procedures are met.

Changes in Internal Control Over Financial Reporting

During the quarter ended September 30, 2015, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

34

PART II.   OTHER INFORMATION

Item 1.  Legal Proceedings

See discussion of legal proceedings in Note 8 to the Consolidated Financial Statements included in Item 1 of Part I of this Report, which is incorporated by reference into this Part II, Item 1.

Item 1a.    Risk Factors

The following supplements the risk factors previously disclosed under Item 1a. of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2015.

In recent years, the Company received a significant portion of its premiums from one agent. This agent was recently acquired by another title insurer. Significant declines in the agent's business would have a negative impact on premiums written.

The Company has one agent that accounted for 12.2%, 23.6% and 16.4% of net premiums written for the nine months ended September 30, 2015 and the years ended December 31, 2014 and 2013, respectively. On July 1, 2015, a competing title insurer acquired the assets of the agent. The agent is under no legal commitment to remit a minimum amount of premiums to the Company, and could cease doing so at any time. A significant decline in business originated by this agent for the Company, whether due to that business being diverted to its new title insurer owner or otherwise, could have a material negative impact on the Company's premiums written.

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

(a)        None

(b)        None

(c)        The following table provides information about purchases by the Company (and all affiliated purchasers) during the quarter ended September 30, 2015 of equity securities that are registered by the Company pursuant to Section 12 of the Exchange Act:

	Issuer Purchases of Equity Securities
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					384,478
July 2015	4,113	$	70.67	4,113	380,365
August 2015	43,482	$	71.93	43,482	336,883
September 2015	17	$	70.29	17	336,866
Total:	47,612	$	71.82	47,612	336,866

For the quarter ended September 30, 2015, the Company purchased an aggregate of 47,612 shares of the Company’s common stock pursuant to the Company’s ongoing purchase program that was initially announced publicly on June 5, 2000. On November 9, 2015, the Board of Directors of the Company approved the purchase of an additional 163,335 shares pursuant to the Company's repurchase plan, such that there was authority remaining under the plan to purchase up to an aggregate of 500,000 shares of the Company’s common stock pursuant to the plan immediately after this approval. Unless terminated earlier by resolution of the Board of Directors, the plan will expire when all shares authorized for purchase under the plan (as such numbers may be amended by the Board from time to time) have been purchased. The Company anticipates making further purchases under this plan from time to time in the future, depending on such factors as the prevailing market price of the Company’s common stock, the Company’s available cash and then existing alternative uses for such cash.

35

Item 5.  Other Information

Amendment to Bylaws

On November 9, 2015, the board of directors (the “Board”) of the Company adopted Amended and Restated Bylaws (the “Bylaws”) of the Company. The Bylaws became effective immediately and include, among other things, the following changes:

• Providing for additional disclosure requirements for notices of director nominations and shareholder proposals.

• Clarifying the procedures for postponement, rescheduling, recessing and adjournment of any meeting of shareholders.

• Clarifying the powers of the presiding officer of a shareholder meeting.

• Providing for an explicit confidentiality obligation for shareholder-nominated directors.

• Clarifying the time period in which an annual meeting of shareholders may be held.

• Conforming the Bylaws to Section 55-8-10 of the North Carolina Business Act by clarifying that, in addition to the shareholders, the Board has the power to fill any newly created directorship or any vacancy occurring in the Board.

• Designating the state and federal courts located within the state of North Carolina as the sole and exclusive forum for certain legal actions, unless the Company consents in writing to the selection of an alternative forum.

The foregoing description of the Bylaws is not complete and is qualified in its entirety by reference to the complete text of the Bylaws, a copy of which is filed as Exhibit 3.1 to this Quarterly Report on Form 10-Q and incorporated by reference herein.

36

Item 6.  Exhibits

3.1	Amended and Restated Bylaws of the Company dated November 9, 2015 (filed herewith)
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
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

37

SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

INVESTORS TITLE COMPANY
By:	/s/ James A. Fine, Jr.
	James A. Fine, Jr.
	President, Principal Financial Officer and
	Principal Accounting Officer

Dated:  November 9, 2015

38

EX-3.1

Exhibit 3.1

BYLAWS
OF
INVESTORS TITLE COMPANY

AMENDED AND RESTATED AS OF NOVEMBER 9, 2015

ARTICLE I.

OFFICES

Section 1.    Principal Office: The principal office of the Corporation shall be located at 121 North Columbia Street, Chapel Hill, North Carolina.

Section 2.    Registered Office: The registered office of the Corporation required by law to be maintained in the State of North Carolina may be, but need not be, identical with the principal office.

Section 3.    Other Offices: The Corporation may have offices at such other places, either within or without the State of North Carolina, as the Board of Directors may from time to time determine, or as the affairs of the Corporation may require.

ARTICLE II.

MEETING OF SHAREHOLDERS

Section 1.    Time and Place of Meetings: All meetings of shareholders shall be held at the principal office of the Corporation, or at such other place, either within or without the State of North Carolina, and on such date and at such time as may be determined from time to time by the Board of Directors.

Section 2.    Annual Meetings: The annual meeting of shareholders shall be held within the time period prescribed by applicable law for the election of directors and to transact such other business as may properly be brought before the meeting.

Section 3.    Special Meetings: Special meetings of the shareholders may be called by any of the following: (a) the Chairman of the Board of Directors; (b) the President of the Corporation; (c) the Board of Directors upon the affirmative vote of at least seventy-five percent (75%) of the entire Board of Directors; or (d) the shareholders upon written request of those persons holding of record not less than eighty percent (80%) of the total voting power of the shares entitled to vote thereon.

Section 4.    Notice of Meetings: Written or printed notice stating the time and place of the meeting shall be delivered no fewer than 10 nor more than 60 days before the date thereof, either personally or by mail, by or at the direction of the President or the other person calling the meeting, to each shareholder of record entitled to vote at such meeting and to each nonvoting shareholder entitled to notice of the meeting.

1

If the corporation is required by law to give notice of proposed action to nonvoting shareholders and the action is to be taken without a meeting pursuant to Section 9 of this Article II, written notice of such proposed action shall be delivered to such shareholders not less than 10 days before such action is taken.

If notice is mailed, such notice shall be effective when deposited in the United States mail with postage thereon prepaid and correctly addressed to the shareholder's address shown in the corporation's current record of shareholders.

In the case of an annual meeting, the notice of meeting need not specifically state the business to be transacted thereat unless it is a matter with respect to which specific notice to the shareholders is expressly required by the provisions of the North Carolina Business Corporation Act. In the case of a special meeting, the notice of meeting shall specifically state the purpose or purposes for which the meeting is called.

When a meeting is adjourned or recessed for more than 120 days after the date fixed for the original meeting or if a new record date for the adjourned or recessed meeting is fixed, notice of the adjourned or recessed meeting shall be given as in the case of an original meeting. When a meeting is adjourned or recessed for 120 days or less and no new record date for the adjourned or recessed meeting is fixed, it is not necessary to give notice of the adjourned or recessed meeting other than by announcement at the meeting at which the adjournment or recess is taken.

Section 5.    Voting Lists: At least ten days before each meeting of shareholders, the Secretary of the Corporation shall prepare an alphabetical list of the shareholders entitled to vote at such meetings, with the address of and number of shares held by each, which list shall be kept on file at the registered office of the Corporation for a period of ten days prior to such meeting, and shall be subject to inspection by any shareholder at any time during the usual business hours. This list shall also be provided and kept open at the time and place of the meeting and shall be subject to inspection by any shareholder during the whole time of the meeting.

Section 6.    Quorum; Adjournment; Postponement:

(a)    The holders of a majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum at meetings of shareholders. If there is no quorum at the opening of a meeting of shareholders, such meeting may be adjourned or recessed from time to time by the Presiding Officer (as defined in Section 7(a) of this Article II) or by the vote of a majority of the shares voting on the motion to adjourn or recess; and, at any adjourned or recessed meeting at which a quorum is present, any business may be transacted which might have been transacted at the original meeting.

The shareholders at a meeting at which a quorum is present may continue to do business until adjournment or recess, notwithstanding the withdrawal of enough shareholders to leave less than a quorum.

(b)    Whether or not a quorum is present, the Presiding Officer may adjourn or recess any meeting of shareholders at any time and for any reason to reconvene at the same or some other place, and, if the meeting is adjourned or recessed for 120 days or less and no new record date for the adjourned or recessed meeting is fixed, notice need not be given of any such adjourned or recessed meeting if the time and place thereof are announced at the meeting at which the adjournment or recess is taken. At the adjourned or recessed meeting, the Corporation may transact any business which might have been transacted at the original meeting.

2

(c)    The Board of Directors may, at any time prior to the holding of a meeting of shareholders, and for any reason, cancel, postpone or reschedule such meeting upon public notice given prior to the time previously scheduled for such meeting of shareholders. The meeting may be postponed or rescheduled to such time and place as is specified in the notice of postponement or rescheduling of such meeting, which notice shall be given in accordance with Section 4 of this Article II.

Section 7.    Manner of Conducting Meetings:

(a)    At each meeting of shareholders, the Chief Executive Officer, or in the Chief Executive Officer’s absence, the director or officer designated by the Board of Directors, shall act as the “Presiding Officer.” The Secretary shall act as secretary of the meeting, but in his or her absence the Presiding Officer may appoint any person to act as secretary of the meeting.

(b)    The date and time of the opening and the closing of the polls for each matter upon which the shareholders will vote at a meeting shall be announced at the meeting by the Presiding Officer. The Board of Directors may adopt by resolution such rules and regulations for the conduct of the meeting of shareholders as it shall deem appropriate and which do not conflict with applicable provisions of law, the articles of incorporation of the Corporation or any amendment thereto and these bylaws. Except to the extent inconsistent with applicable provisions of law or this Corporation’s articles of incorporation, these bylaws and such rules and regulations as adopted by the Board of Directors, the Presiding Officer may prescribe such rules, regulations and procedures and do all such acts as, in the judgment of such Presiding Officer, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the Presiding Officer, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to shareholders entitled to vote at the meeting, their duly authorized and constituted proxies or such other persons as the Presiding Officer shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; (v) restrictions on the use of audio or video recording devices at the meeting and (vi) limitations on the time allotted to questions or comments by participants.

Section 8.    Voting of Shares: Each outstanding share having voting rights shall be entitled to one vote on each matter submitted to a vote at a meeting of shareholders.

Except in the election of directors, the vote of a majority of the shares voted on any matter at a meeting of shareholders at which a quorum is present shall be the act of the shareholders on that matter, unless the vote of a greater number is required by law or by the articles of incorporation or bylaws of this Corporation.

3

Voting on all matters shall be by voice or by a show of hands unless the holders of one-tenth of the shares represented at the meeting shall, prior to the voting on any matter, demand a ballot vote on that particular matter.

Section 9.    Informal Action by Shareholders: Any action which may be taken at a meeting of the shareholders may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all of the persons who would be entitled to vote upon such action at a meeting, and filed with the Secretary of the Corporation to be kept in the Corporate Minute Book.

Section 10.    Advance Notice of Shareholder Nominations and Proposals:

(a)    At any meeting of the shareholders, no nomination for election to the Board of Directors or other business shall be brought before the meeting, or considered or acted upon at the meeting, unless such nomination, or the proposal for such other business, as the case may be, either (i) was specifically set forth in the notice of meeting given by the Corporation or by the other person or persons duly calling the meeting (or was referred to in such notice of meeting and specifically set forth in an accompanying proxy statement, information statement or other document), (ii) is otherwise made by or at the direction of the Board of Directors or a duly authorized committee thereof, or (iii) is made by or on behalf of a shareholder of the Corporation who was a shareholder of record at the time the notice provided for in this Section 10 is received by the Secretary and at the time of the meeting, who is entitled to vote at the meeting and who complies with the requirements of this Section 10 with respect to such nomination or proposal.

(b)    For nominations or other business to be properly brought before a meeting by a shareholder in compliance with the requirements of this Section 10, the shareholder must have given timely notice in writing to the Secretary of the Corporation of such shareholder’s intent to make a nomination or to bring any other business before the meeting, which notice shall include the applicable information required by subsection (c) below. In the case of an annual meeting, such notice, to be timely, shall be received by the Secretary at the principal executive offices of the Corporation not later than the close of business on the 90th day nor earlier than the close of business on the 120th day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the actual date of the annual meeting as to which the notice is provided is more than 30 days before or more than 60 days after such anniversary date, notice by the shareholder must be so delivered not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of the 90th day prior to such annual meeting or, if the first public announcement of the date of such annual meeting is less than 90 days prior to the date of such annual meeting, the tenth day following the day on which public announcement of the date of such meeting is first made by the Corporation. In the case of a special meeting at which directors are to be elected, the shareholder may nominate a person or persons for election as director if the shareholder’s notice is so delivered to the Secretary of the Corporation not earlier than the earlier of the date on which a public announcement of the date of such meeting is first made by the Corporation or the date on which notice of the special meeting is first sent to shareholders, and not later than the close of business on the 15th day following the earlier of such date of first public announcement or the date on which notice of the special meeting was first sent unless the date of such special meeting is more than 105 days after the earlier of such dates, in which case such notice may be delivered no later than the 90th day preceding the date of such special meeting. In the case of a special meeting at which directors are not to be elected, the only business that may be conducted at such a meeting is that within the purpose or purposes described in the meeting notice, and consequently a shareholder shall not have the right to make a proposal pursuant to clause (iii) of subsection (a) above. In no event shall any adjournment, recess or postponement of any meeting of shareholders or the announcement thereof commence a new time period for the giving of a shareholder’s notice as described above.

4

(c)    The notice by a shareholder pursuant to subsection (b) above shall set forth the following information, as applicable:

(i)    as to the shareholder giving the notice and the Shareholder Associated Person (as defined in subsection (j) below), if any, on whose behalf the nomination or proposal is made (including any affiliate or associate) of such shareholder or Shareholder Associated Person): (A) the name and address of such shareholder (as they appear on the Corporation’s books) and of any such Shareholder Associated Person; (B) a representation that the shareholder is a holder of record of stock entitled to vote at such meeting, will continue to be a holder of record of stock entitled to vote at such meeting through the date of such meeting and intends to appear in person or by proxy at the meeting to make the nomination, proposal or other business specified in the notice; (C) the class or series and number of shares of capital stock of the Corporation which are, directly or indirectly, held of record or are beneficially owned (within the meaning of Rule 13d-3 under the Exchange Act) by such shareholder or by any such Shareholder Associated Person (except that such shareholder and any such Shareholder Associated Person shall in all events be deemed to beneficially own any shares of any class or series of the Corporation as to which such shareholder or Shareholder Associated Person has a right to acquire beneficial ownership at any time in the future); (D) a complete and accurate description of any agreement, arrangement or understanding between or among such shareholder and any such Shareholder Associated Person, any of their respective affiliates or associates, and any other person or persons (including their names) in connection with the proposal of such nomination, proposal or other business; (E) a complete and accurate description and the amounts of any options, warrants, convertible securities, stock appreciation rights or other rights with an exercise or conversion privilege or a settlement payment or mechanism at a price related to that of any class or series of shares of the Corporation or with a value derived in whole or in part from the price or value, or volatility of prices or values, of shares of any class or series of the Corporation, whether or not such instrument or right shall be subject to settlement in the underlying shares of the Corporation or otherwise and whether or not the shareholder or Shareholder Associated Person may have entered into any hedge or other transaction to mitigate the economic effect of such rights, directly or indirectly owned beneficially by such shareholder or Shareholder Associated Person, and any other direct or indirect opportunity of such shareholder or Shareholder Associated Person, through a derivative instrument, swap, or other transaction, series of transactions, or arrangement, to profit or share in any profit derived from any increase or decrease in the price or value of the shares of the Corporation (“Derivative Rights”);

5

(F) a complete and accurate description of any rights to dividends on the shares of any class or series of the Corporation owned beneficially by such shareholder or such Shareholder Associated Person that are separated or separable from the underlying shares of the Corporation; (G) a complete and accurate description of any proxy, contract, event, arrangement, understanding, or relationship pursuant to which such shareholder and such Shareholder Associated Person, if any, has a right to vote any shares or any other security of the Corporation; (H) a complete and accurate description of any short interest of such shareholder or Shareholder Associated Person in any shares or other security of the Corporation (for purposes of these bylaws, a person shall be deemed to have a short interest in a security if such person directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has the opportunity to profit or share in any profit derived from any decrease in the value of the subject security); (I) a complete and accurate description of any proportionate interest in shares of the Corporation or Derivative Rights held, directly or indirectly, by a general or limited partnership in which such shareholder or such Shareholder Associated Person is a general partner or, directly or indirectly, beneficially owns an interest in a general partner; and (J) a complete and accurate description of any performance-related fees that such shareholder or Shareholder Associated Person is entitled to receive, either directly or indirectly, based on any increase or decrease in the value of shares of the Corporation or Derivative Rights; (K) the name of each person with whom such shareholder, or Shareholder Associated Person, or nominee has any agreement, arrangement or understanding (whether written or oral) (1) for the purposes of acquiring, holding, voting (except pursuant to a revocable proxy given to such person in response to a public proxy made generally by such person to all holders of shares of the Corporation) or disposing of any shares of capital stock of the Corporation, (2) to cooperate in obtaining, changing or influencing the control of the Corporation (except independent financial, legal and other advisors acting in the ordinary course of their respective businesses), (3) with the effect or intent of increasing or decreasing the voting power of, or that contemplates any person voting together with, any such shareholder or Shareholder Associated Person with respect to any shares of the capital stock of the Corporation, any business proposed by a shareholder and a description of each such agreement, arrangement or understanding; (L) a list of all transactions by such shareholder and any Shareholder Associated Person involving any securities of the Corporation or any Derivative Rights within the six-month period prior to the date of the notice; (M) to the extent not disclosed in clause E above, the principal amount of any indebtedness of the Corporation or any of its subsidiaries beneficially owned by such shareholder or by any such Shareholder Associated Person, together with the title of the instrument under which such indebtedness was issued and a description of any Derivative Right entered into by or on behalf of such shareholder or such Shareholder Associated Person relating to the value or payment of any indebtedness of the Corporation or any such subsidiary; (N) any other information relating to such shareholder and any Shareholder Associated Person that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for the proposal pursuant to Regulation 14A of the Exchange Act; and (O) a representation as to whether such shareholder or any such Shareholder Associated Person intends or is part of a group that intends to (1) deliver a proxy statement and/or form of proxy to holders of at least the percentage of the voting power of the Corporation’s outstanding capital stock required to approve or adopt the proposal or to elect each such nominee and/or (2) otherwise to solicit proxies from shareholders in support of such proposal or nomination;

6

(ii)    as to each person whom the shareholder proposes to nominate for election or reelection as a director: (A) the name, age, business address and residence address of such person; (B) the principal occupation or employment of such person (present and for the past five (5) years); (C) the class or series and number of shares of capital stock of the Corporation which are owned beneficially and of record by such person; (D) a complete and accurate description of all arrangements or understandings between or among any of the shareholder, any Shareholder Associated Person, each nominee, and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the shareholder; (E) all information regarding each nominee that would be required to be obtained or disclosed in solicitations of proxies for election of directors in an election contest pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”), including without limitation such person’s written consent to being named as a nominee and to serving as a director, if elected; (F) a complete and accurate description of all direct and indirect compensation and other material monetary agreements, arrangements and undertakings during the past three years, and other material relationships, between such shareholder and any Shareholder Associated Person, if any, on the one hand, and each proposed nominee, and his or her respective affiliates and associates or others acting in concert with such nominee on the other hand, including, without limitation all information that would be required to be disclosed pursuant to Item 404 promulgated under Regulation S-K if such shareholder or Shareholder Associated Person were the “registrant” pursuant to Regulation S-K of the U.S. Securities and Exchange Commission (the “Commission”) and such proposed nominee were a director or executive officer of such registrant; (G) a completed and signed questionnaire and written representation and agreement, each as required by Section 10(i); and (H) an undertaking by each proposed nominee to promptly furnish such information (1) as may reasonably be requested by the Corporation to determine the eligibility of such proposed nominee to serve as an independent director of the Corporation in accordance with the Corporation’s internal governance guidelines or (2) that could be material to a reasonable shareholder’s understanding of the independence, or lack thereof, or such nominee, and any other information of the type requested from and provided by persons nominated by the Board of Directors or a committee thereof; and

(iii)    as to any other business (other than the nomination of directors) that the shareholder proposes to bring before the meeting, (A) a brief description of the business desired to be brought before the meeting; (B) the text of the proposal or business (including the complete text of any resolutions proposed for consideration and in the event that such business includes a proposal to amend these bylaws, the text of the proposed amendment); (C) a complete and accurate description of all agreements, arrangements and understandings between or among such shareholder and such Shareholder Associated Person, if any, and any other person or persons (including their names and addresses) in connection with the proposal of such business; (D) the reasons for conducting such business at the meeting; and (E) a complete and accurate description of any material interest in such business of such shareholder and the Shareholder Associated Person, if any, on whose behalf the proposal is made.

7

(d)     A shareholder providing notice of business or any nomination proposed to be brought before a meeting shall further update and supplement such notice, if necessary, so that the information provided or required to be provided in such notice pursuant to this Section 12 shall be true and correct (i) as of the record date for the meeting and (ii) as of the date that is ten (10) business days prior to the meeting or any adjournment, recess, rescheduling or postponement thereof, and such update and supplement shall be delivered to, or mailed and received by, the secretary of the Corporation not later than five (5) business days after the record date for the meeting (in the case of the update and supplement required to be made as of the record date) and not later than seven (7) business days prior to the date for the meeting, if practicable (or, if not practicable, on the first practicable date prior to) or any adjournment, recess, rescheduling or postponement thereof (in the case of the update and supplement required to be made as of ten (10) business days prior to the meeting or any adjournment, recess, rescheduling or postponement thereof).

(e)    Except as otherwise required by applicable law, the Presiding Officer at any meeting of the shareholders shall have the power and duty to determine whether any nomination or proposal made by or on behalf of a shareholder is made in compliance with the requirements set forth in this Section 10 and applicable law and, if in accordance with the Presiding Officer’s determination any proposed nomination or proposal is not in compliance with this Section 10 or applicable law, to declare that such defective nomination or proposal is out of order or that a matter or business was not properly brought before the meeting and shall not be considered or acted upon. Notwithstanding the foregoing provisions of this Section 10, unless otherwise required by applicable law, if the shareholder (or a qualified representative of the shareholder) does not appear at the annual or special meeting of shareholders of the Corporation to present a nomination or proposed business, such nomination shall be disregarded and such proposed business shall not be transacted, notwithstanding that proxies in respect of such vote may have been received by the Corporation. For purposes of this Section 10(e), to be considered a qualified representative of the shareholder, a person must be a duly authorized officer, manager or partner of such shareholder or must be authorized by a writing executed by such shareholder or an electronic transmission delivered by such shareholder to act for such shareholder as proxy at the meeting of shareholders and such person must produce such writing or electronic transmission, or a reliable reproduction of the writing or electronic transmission, at the meeting of shareholders. This Section 10 has been adopted to provide shareholders with the reasonable opportunity to bring nominations or other business before meetings of the shareholders, consistent with the interests of the Corporation in promoting the orderly, deliberate and informed presentation, consideration and conduct of business at meetings of the shareholders of the Corporation, and shall be construed accordingly.

(f)    Nothing in this Section 10 shall impair, or be affected by, any right of any shareholder to request that a proposal be included in the Corporation’s notice of meeting and proxy statement to the extent that such right is provided under the Exchange Act, including without limitation Rule 14a-8 under the Exchange Act or any other rules then applicable; but nothing in this Section 10 is intended to in any way enlarge any such right of a shareholder thereunder or to in any way limit the Corporation’s right, if any, thereunder to exclude any such proposal from its notice of meeting or proxy statement, it being intended that the provisions of this Section 10 operate independently of the operation of the Exchange Act thereunder.

8

(g)    Nothing in this Section 10 shall confer upon any shareholder the right to bring before any meeting of shareholders any proposal or other matter that, under applicable law, may be brought before such meeting only by action of the Board of Directors, or that otherwise may not be properly brought before a meeting of shareholders.

(h)    Nothing in this Section 10 shall affect any right of any shareholder to make recommendations to the Board of Directors or any committee thereof as to nominations for directors or any other matter in accordance with policies and procedures therefor from time to time adopted by the Board of Directors or any committee thereof.

(i)    To be eligible to be a nominee for election or reelection as a director of the Corporation, a proposed nominee must deliver (in accordance with the time periods prescribed for delivery of notice under Section 10 of these bylaws and applicable law) to the secretary of the Corporation at the principal executive offices of the Corporation a written questionnaire with respect to the background and qualification of such person and the background of any other person or entity on whose behalf the nomination is being made (which questionnaire shall be provided by the secretary of the Corporation upon written request) and a written representation and agreement (in the form provided by the secretary of the Corporation upon written request) that such person (i) is not and will not become a party to (A) any agreement, arrangement or understanding with, and has not given any commitment or assurance to, any person or entity as to how such person, if elected as a director of the Corporation, will act or vote on any issue or question (a “Voting Commitment”) that has not been disclosed to the Corporation or (B) any Voting Commitment that could limit or interfere with such person’s ability to comply, if elected as a director of the Corporation, with such person’s fiduciary duties under applicable law, (ii) is not and will not become a party to any agreement, arrangement or understanding with any person or entity other than the Corporation with respect to any direct or indirect compensation, reimbursement or indemnification in connection with service or action as a director of the Corporation that has not been disclosed to the Corporation, and (iii) in such person’s individual capacity and on behalf of any person or entity on whose behalf the nomination is being made, would be in compliance, if elected as a director of the Corporation, and will comply with all applicable publicly disclosed corporate governance, conflict of interest, confidentiality and stock ownership and trading policies and other guidelines of the Corporation.

(j)    As used in this Section 10, (i) “Shareholder Associated Person” shall mean, with respect to a shareholder, (A) any beneficial owner of shares of stock of the Corporation, including interests held by members of such shareholder’s immediate family sharing the same household, on whose behalf any proposal or nomination is made by such shareholder; (B) any affiliates or associates of such shareholder or any beneficial owner described in clause (A) hereof; and (C) each other person with whom any of the persons described in the foregoing clauses (A) and (B) either is acting in concert with such shareholder with respect to the Corporation or has any agreement, arrangement or understanding (whether written or oral) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy given to such person in response to a public proxy solicitation made generally by such person to all shareholders entitled to vote at the meeting) or disposing of any capital stock of the Corporation or to cooperate in obtaining, changing or influencing the control of the Corporation (except independent financial, legal and other advisors acting in the ordinary course of their respective businesses); (ii) the term “person” includes an entity as well as an individual; (iii) “public announcement” shall mean disclosure (A) in a press release reported by the Dow Jones News Service, the Associated Press or any comparable national news service, (B) in a document publicly filed by the Corporation with the Securities and Exchange Commission pursuant to Section 13, 14, or 15(d) of the Exchange Act or (C) in a notice of meeting (or any supplement) pursuant to Article II, Section 4 of these bylaws and (iv) “affiliate” and “associate” shall have the respective meanings set forth in Rule 12b-2 of the Exchange Act (or any successor provision thereto).

9

ARTICLE III.

DIRECTORS

Section 1.    General Powers: The business and affairs of the Corporation shall be managed by the Board of Directors or by such Executive Committees as the Board of Directors may establish pursuant to these bylaws.

Section 2.    Number, Term and Qualifications: The number of Directors of the Corporation shall not be less than nine nor more than twelve, as determined from time to time by the shareholders. The Board of Directors shall be divided into three classes, having staggered terms of three years each. Each director shall hold office until his death, resignation, retirement, removal, disqualification, or his successor is elected and qualified. Directors need not be residents of the State of North Carolina or shareholders of the Corporation.

Section 3.    Election of Directors: Except as provided in Section 6 of this Article III, the directors shall be elected at the annual meeting of shareholders; and those persons who receive the highest number of votes shall be deemed to have been elected.

Section 4.    Removal: Neither the entire Board of Directors nor any individual director of the corporation shall be removed from office, with or without cause, unless a meeting of the shareholders of the corporation is held to act thereon and there is obtained the approval of a percentage of all votes entitled to be cast thereon of at least eighty percent (80%); provided, however, that if any such removal shall have been recommended to the shareholders of the corporation by a resolution of the Board of Directors adopted by the affirmative vote of seventy-five percent (75%) of the entire Board of Directors, then such removal may be effected if a meeting of the shareholders of the corporation is held to act thereon and there is obtained the approval of a percentage of all votes entitled to be cast thereon equal to a majority of all votes entitled to be cast thereon; provided, further, that any such removal may be effected without a meeting or vote of the shareholders of the corporation if a resolution determining that cause exists for such removal shall be adopted by the affirmative vote of seventy-five percent (75%) of the entire Board of Directors.

Section 5.    Vacancies: Unless otherwise provided by the articles of incorporation of the Corporation, any newly created directorship or any vacancy occurring in the Board of Directors for any cause may be filled either by the shareholders or by the Board of Directors, and if the directors remaining in office constitute fewer than a quorum of the Board of Directors, the vacancy may be filled by the affirmative vote of a majority of the directors remaining in office or by the sole remaining director. Each director so elected shall hold office until the expiration of the term of office of the director whom he or she has replaced or until his or her successor is elected and qualified, subject to such director’s earlier death, resignation, disqualification or removal.

10

Section 6.    Chairman: There may be a Chairman of the Board of Directors elected by the directors from their number at any meeting of the Board of Directors. The Chairman shall preside at all meetings of the Board of Directors and perform such other duties as may be directed by the Board of Directors.

Section 7.    Compensation: The Board of Directors may compensate directors for their services.

Section 8.    Executive Committee: The Board of Directors may, by resolution adopted by a majority of the number of directors fixed by these bylaws, designate two or more directors to constitute an Executive Committee, which committee, to the extent provided in such resolution, shall have and may exercise all of the authority of the Board of Directors in the management of the Corporation.

Section 9.    Confidentiality: Each director shall hold all Confidential Information (as defined below) in the strictest confidence and shall take all appropriate measures to ensure that no other person shall have access to the Confidential Information. No director shall disclose any Confidential Information to any person outside the Corporation, either during or after his or her service as a director, except with authorization of the Board of Directors or as may be required by law. For the avoidance of doubt, the foregoing shall also apply to any director who serves on the Board of Directors as the designee or nominee of a shareholder of the Corporation, and such director shall not disclose any Confidential Information to such shareholder or any of its officers, directors, managers, members, partners, employees, attorneys, accountants, advisors, agents, consultants or other representatives without the approval of the Board of Directors. “Confidential Information” shall mean all non-public information (whether or not material to the Corporation) entrusted to or obtained by a director by reason of his or her position as a director of the Corporation.

Section 10.    Indemnification: Any person who at any time serves or has served as a director of the Corporation, or who, while serving as a director of the Corporation, serves or has served as an officer, employee or agent of the Corporation or, at the request of the Corporation, as a director, officer, partner, trustee, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, or as a trustee or administrator under an employee benefit plan, shall have a right to be indemnified by the Corporation to the fullest extent permitted by law against (a) all expenses, including but not limited to attorneys’ fees, the cost of any investigation, experts and similar expenses incurred by him in connection with any threatened, pending, or completed civil, criminal, administrative, investigative, or arbitrative action, suit or proceeding (and any appeal therein), whether or not brought by or on behalf of the Corporation, seeking to hold him liable by reason of the fact that he is or was acting in such capacity, and (b) all payments made by him in satisfaction of any judgment, money decree, fine (including an excise tax assessed with respect to an employee benefit plan), penalty, or settlement for which he may have become liable in any such action, suit or proceeding.

11

The Board of Directors of the Corporation shall take all such action as may be necessary and appropriate to authorize the Corporation to pay the indemnification required by this bylaw.

To the fullest extent from time to time permitted by law, the Corporation shall pay as incurred all the expenses, including but not limited to attorneys’ fees and expenses of any person indemnified hereunder, incurred in defending any action, proceeding, suit or investigation and in advance of the final disposition of such action, proceeding, suit or investigation.

Any person who at any time after the adoption of this bylaw serves or has served in the aforesaid capacity for or on behalf of the Corporation shall be deemed to be doing or to have done so in reliance upon, and as consideration for, the right of indemnification provided herein. Such right shall inure to the benefit of the legal representatives of any such person and shall not be exclusive of any other rights to which such person may be entitled apart from the provision of this bylaw.

The Board of Directors of the corporation shall take all such action as may be necessary and appropriate to authorize the corporation to pay the indemnification required by this bylaw.

To the fullest extent from time to time permitted by law, the Corporation agrees to pay as incurred all the expenses, including but not limited to attorneys’ fees and expenses of any person indemnified hereunder, incurred in defending any action, proceeding, suit or investigation and in advance of the final disposition of such action, proceeding, suit or investigation.

Any person who at any time after the adoption of this bylaw serves or has served in the aforesaid capacity for or on behalf of the corporation shall be deemed to be doing or to have done so in reliance upon, and as consideration for, the right of indemnification provided herein. Such right shall inure to the benefit of the legal representatives of any such person and shall not be exclusive of any other rights to which such person may be entitled apart from the provision of this bylaw.

ARTICLE IV.

MEETING OF DIRECTORS

Section 1.    Regular Meetings: A regular meeting of the Board of Directors shall be held immediately after, and at the same place as, the annual meeting of shareholders. In addition, the Board of Directors may provide, by resolution, the time and place, either within or without the State of North Carolina, for the holding of additional regular meetings.

Section 2.    Special Meetings: Special Meetings of the Board of Directors may be called by or at the request of the President or any two directors. Such meetings may be held either within or without the State of North Carolina.

Section 3.    Notice of Meetings: Regular meetings of the Board of Directors may be held without notice.

12

The person or persons calling a special meeting of the Board of Directors shall, at least two days before the meeting, give notice thereof by the usual means of communication. Such notice need not specify the purpose for which the meeting is called.

Attendance by a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called.

Section 4.    Quorum: A majority of the directors fixed by these bylaws shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.

Section 5.    Manner of Acting: Except as otherwise provided in this Section 5, the act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.

The vote of a majority of the number of directors fixed by these bylaws shall be required to adopt a resolution constituting an executive committee. The vote of a majority of the directors then holding office shall be required to adopt, amend or repeal a bylaw, or to adopt a resolution dissolving the corporation without action by the shareholders. Vacancies in the Board of Directors may be filled as provided in Article III, Section 5 of these bylaws.

Section 6.    Informal Action by Directors: Action taken by a majority of the directors without a meeting is nevertheless action by the Board of Directors if written consent to the action in question is signed by all the directors and filed with the minutes of the proceedings.

Section 7.    Bonds: The Board of Directors may by resolution require any or all officers, agents and employees of the Corporation to give bond to the Corporation, with sufficient sureties, conditioned on the faithful performance of the duties of their respective offices or positions, and to comply with such other conditions as may from time to time be required by the Board of Directors.

ARTICLE V.

OFFICERS

Section 1.    Number: The officers of the Corporation shall consist of a President, a Secretary, a Treasurer, and such Vice-Presidents, Assistant Secretaries, Assistant Treasurers and other officers as the Board of Directors may from time to time elect. Any two or more offices may be held by the same person, except the offices of President and Secretary.

Section 2.    Election and Term: The officers of the Corporation shall be elected by the Board of Directors. Such elections may be held at any regular or special meeting of the Board of Directors. Each officer shall hold office until his death, resignation, retirement, removal, disqualification, or his successor is elected and qualified.

Section 3.    Removal: Any officer or agent elected or appointed by the Board of Directors may be removed by the Board of Directors with or without cause; but such removal shall be without prejudice to the contract rights, if any, of the person so removed.

13

Section 4.    Compensation: The compensation of all officers of the Corporation shall be fixed by the Board of Directors.

Section 5.    Chief Executive Officer: The Chief Executive Officer shall be the principal executive and administrative officer of the Corporation and, subject to the control of the Board of Directors, shall supervise and control the management of the Corporation in accordance with these bylaws.

He shall, when present, preside at all meetings of shareholders. At the request of the Chairman of the Board, or in case of his absence or inability to act, the Chief Executive Officer may act in his place. He shall sign, with any other proper officer, any deeds, mortgages, bonds, contracts, or other instruments which may be lawfully executed on behalf of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be delegated by the Board of Directors to some other officer or agent. The Chief Executive Officer shall perform all duties incident to his office and such other duties as may be prescribed by the Board of Directors from time to time.

Section 6.    President: The President shall be a principal administrative officer of the Corporation and, subject to the control of the Chief Executive Officer, shall assist the Chief Executive Officer in supervising and controlling the management of the Corporation in accordance with these bylaws.

At the request of the Chief Executive Officer, or in case of his absence or inability to act, the President may act in his place. Furthermore, at the request of the Chairman of the Board, or in case of the absence or inability to act of both the Chairman of the Board and the Chief Executive Officer, the President may act in the Chairman's place. He shall sign, with any other proper officer, certificates for shares of the Corporation and any deeds, mortgages, bonds, contracts, or other instruments which may be lawfully executed on behalf of the Corporation, except where required or permitted by law to be otherwise signed and executed and except where the signing and execution thereof shall be delegated by the Board of Directors to some other officer or agent. The President shall perform all duties incident to his office and such other duties as may be prescribed by the Board of Directors from time to time.

Section 7.    Vice-Presidents: The Vice-Presidents in the order of their election, unless otherwise determined by the Board of Directors, shall, in the absence or disability of the President, perform the duties and exercise the powers of that office, subject to the restrictions applicable to such office. In addition, they shall perform such other duties and have such other powers as the Board of Directors shall prescribe.

Section 8.    Secretary: The Secretary shall keep accurate records of the acts and proceedings of all meetings of shareholders and directors. He shall give all notices required by law and by these bylaws. He shall have general charge of the corporate books and records and of the corporate seal, and he shall affix the corporate seal to any lawfully executed instrument requiring it. He shall have general charge of the stock transfer books of the Corporation and shall keep, at the registered or principal office of the Corporation, a record of shareholders showing the name and address of each shareholder and the number and class of the shares held by each. He shall sign such instruments as may require his signature, and, in general, shall perform all duties incident to the office of Secretary and such other duties as may be assigned to him from time to time by the President or by the Board of Directors.

14

Section 9.    Treasurer: The Treasurer shall have custody of all funds and securities belonging to the Corporation and shall receive, deposit or disburse the same under the direction of the Board of Directors. He shall keep full and accurate accounts of the finances of the Corporation in books especially provided for that purpose; and he shall cause a true statement of its assets and liabilities as of the close of each fiscal year and of the results of its operations and of changes in surplus for such fiscal year, all in reasonable detail, including particulars as to convertible securities then outstanding, to be made and filed at the registered or principal office of the Corporation within four months after the end of such fiscal year. The statement so filed shall be kept available for inspection by any shareholder for a period of ten years; and the Treasurer shall mail or otherwise deliver a copy of the latest such statement to any shareholder upon his written request thereof. The Treasurer shall, in general perform all duties incident to his office and such other duties as may be assigned to him from time to time by the President or by the Board of Directors.

Section 10.    Assistant Secretaries and Treasurers: The Assistant Secretaries and Assistant Treasurers shall, in the absence or disability of the Secretary or the Treasurer, respectively, perform the duties and exercise the powers of those offices, and they shall, in general, perform such other duties as shall be assigned to them by the Secretary or the Treasurer, respectively, or by the President or the Board of Directors.

ARTICLE VI.

CONTRACTS, LOANS AND DEPOSITS

Section 1.    Contracts: The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument on behalf of the Corporation, and such authority may be general or confined to specific instances.

Section 2.    Loans: No loans to or from the Corporation shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors. Such authority may be general or confined to specific instances.

Section 3.    Checks and Drafts: All checks, drafts or other orders for the payment of money issued in the name of the Corporation shall be signed by such officer or officers, agent or agents of the Corporation and in such manner as shall from time to time be determined by resolution of the Board of Directors.

Section 4.    Deposits: All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such depositories as the Board of Directors shall direct.

15

ARTICLE VII.

SHARES AND THEIR TRANSFER

Section 1.    Certificates for Shares; Uncertificated Shares: Shares of the capital stock of the Corporation may be certificated or uncertificated, as provided under the North Carolina Business Corporation Act. Certificates representing shares of the Corporation shall be issued in such form as the Board of Directors shall determine and shall be signed by the President or any Vice-President and the Secretary, Assistant Secretary, Treasurer or Assistant Treasurer. At a minimum, each certificate shall set forth the name of the Corporation, that the Corporation is organized under the laws of the State of North Carolina, the name of the shareholder and the number and class (and the designation of the series, if any) of the shares represented. Such certificates shall be consecutively numbered or otherwise identified; and the name and address of the persons, corporations, firms or organizations to whom they are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the Corporation.

Within a reasonable time after the issue or transfer of shares without certificates, the Corporation shall send the shareholder a written statement that shall set forth the name of the Corporation, that the Corporation is organized under the laws of the State of North Carolina, the name of the shareholder and the number and class (and the designation of the series, if any) of the shares represented.

Section 2.    Transfer of Shares: Transfers of certificated shares shall be made on the stock transfer books of the Corporation only upon surrender of the certificates for the shares sought to be transferred by the record holder thereof or by his duly authorized agent, transferee or legal representative. All certificates surrendered for transfer shall be cancelled before new certificates or uncertificated shares for the transferred shares shall be issued.

Upon the receipt of proper transfer instructions from the registered owner of uncertificated shares, such uncertificated shares shall be cancelled, new equivalent uncertificated shares or certificated shares shall be issued to the shareholder entitled thereto and the transaction shall be recorded upon the stock transfer books of the Corporation.

Section 3.    Fixing Record Date: For the purpose of determining the shareholders entitled to notice of a meeting of shareholders, to demand a special meeting, to vote, to take any other action, or to receive a dividend with respect to their shares, the Board of Directors may fix in advance a date as the record date for any such determination of shareholders. Such record date fixed by the Board of Directors under this Section 3 shall not be more than 70 days before the meeting or action requiring a determination of shareholders.

If no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to a dividend, the close of the business day before the first notice is delivered to shareholders or the date on which the Board of Directors authorizes the dividend, as the case may be, shall be the record date for such determination of shareholders.

When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this Section 3, such determination shall apply to any adjournment, recess or postponement thereof unless the Board of Directors fixes a new record date, which it must do if the meeting is adjourned, recessed or postponed to a date more than 120 days after the date fixed for the original meeting.

16

Section 4.    Lost Certificates: The Board of Directors may authorize the issuance of a new share certificate or uncertificated shares in place of a certificate claimed to have been lost or destroyed, upon receipt of an affidavit of such fact from the person claiming the loss or destruction. When authorizing such issuance of a new certificate or uncertificated shares, the Board of Directors may require the claimant to give the Corporation a bond in such sum as it may direct to indemnify the Corporation against loss from any claim with respect to the certificate claimed to have been lost or destroyed; or the Board of Directors may, by resolution reciting that the circumstances justify such action, authorize the issuance of the new certificate or uncertificated shares without requiring such a bond.

ARTICLE VIII.

GENERAL PROVISIONS

Section 1.    Dividends: The Board of Directors may from time to time declare, and the Corporation may pay, dividends on its outstanding shares in the manner and upon the terms and conditions provided by law and by its articles of incorporation.

Section 2.    Seal: The corporate seal of the Corporation shall consist of two concentric circles between which is the name of the Corporation and in the center of which is inscribed SEAL; and such seal, as impressed on the margin hereof, is hereby adopted as the corporate seal of the Corporation.

Section 3.    Waiver of Notice: Whenever any notice is required to be given to any shareholder or director under the provisions of the North Carolina Business Corporation Act or under the provisions of the articles of incorporation or bylaws of this Corporation, a waiver thereof in writing signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be equivalent to the giving of such notice.

Section 4.    Fiscal Year: Unless otherwise ordered by the Board of Directors, the fiscal year of the Corporation shall be from January 1 to December 31.

Section 5.    Severability: Whenever possible, each provision or portion of any provision of these bylaws will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of these bylaws is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such provision or portion of any provision shall be severable and the invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and these bylaws will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein.

Section 6.    Exclusive Forum:

(a)    To the fullest extent permitted by law, and unless the Corporation consents in writing to the selection of an alternative forum, the state courts of North Carolina in and for Orange County, North Carolina, subject to designation or assignment to the North Carolina Business Court (or, if no state court located within the State of North Carolina has jurisdiction, the United States District Court for the Middle District of North Carolina). shall be the sole and exclusive forum for: (i) any derivative action or proceeding brought in the name or right of the Corporation or on its behalf, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the shareholders of the Corporation, (iii) any action asserting a claim arising pursuant to any provision of the North Carolina Business Corporation Act, the Corporation’s articles of incorporation or these bylaws (as each may be amended from time to time), or (iv) any action asserting a claim governed by the internal affairs doctrine, including, without limitation, any action to interpret, apply, enforce or determine the validity of the Corporation’s articles of incorporation or these bylaws (each as may be amended from time to time) (collectively, the “Actions”).

17

(b)    If any Action is filed in a court other than pursuant to Section 6(a) above (a “Foreign Action”) in the name of any shareholder, such shareholder shall be deemed to have consented to (i) the personal jurisdiction of the state and federal courts located within the State of North Carolina in connection with any action brought in any such court to enforce Section 6(a) above (an “Enforcement Action”) and (ii) having service of process made upon such shareholder in any such Enforcement Action by service upon such shareholder’s counsel in the Foreign Action as agent for such shareholder.

Section 7.    Amendments: Except as otherwise provided herein, these bylaws may be amended or repealed and new bylaws may be adopted by the affirmative vote of a majority of the directors then holding office at any regular or special meeting of the Board of Directors.

The Board of Directors shall have no power to adopt a bylaw: (1) requiring more than a majority of the voting shares for a quorum at a meeting of shareholders or more than a majority of the votes cast to constitute action by the shareholders, except where higher percentages are required by law; (2) providing for the management of the Corporation otherwise than by the Board of Directors or its Executive Committees; (3) increasing or decreasing the number of directors; (4) classifying and staggering the election of directors. No bylaw adopted or amended by the shareholders shall be altered or repealed by the Board of Directors.

No provision of these bylaws may be amended, altered or repealed by the shareholders of the corporation unless a meeting of the shareholders is held to act thereon and there is obtained the approval of a percentage of all the votes entitled to be cast on at least eighty percent (80%); provided, however, that the approval of the majority of all the votes entitled to be cast shall be sufficient to approve any such amendment, alteration or repeal that has been favorably recommended to the shareholders by resolution adopted by the affirmative vote of at least seventy-five percent (75%) of the entire Board of Directors.

18

EX-31.1

Exhibit 31(i)

Certification

I, J. Allen Fine, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Investors Title Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and    

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2015	/s/ J. Allen Fine
		J.Allen Fine
		Chief Executive Officer

EX-31.2

Exhibit 31(ii)

Certification

I, James A. Fine, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Investors Title Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	November 9, 2015	/s/ James A. Fine, Jr.
		James A. Fine, Jr.
		Chief Financial Officer

EX-32

Exhibit 32

Certifications

Pursuant to 18 U.S.C. Section 1350,

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-Q of Investors Title Company, a North Carolina corporation (the "Company") for the quarter ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	November 9, 2015	/s/ J. Allen Fine
		J. Allen Fine
		Chief Executive Officer
Dated:	November 9, 2015	/s/ James A. Fine, Jr.
		James A. Fine, Jr.
		Chief Financial Officer

XML

Fair Value Measurement (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction rate security bond par value	$ 1,000,000	$ 1,000,000
Percentage of auction rate security guaranteed	97.00%	97.00%
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of carrying value of auction rate securities	1.00%	1.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of carrying value of auction rate securities	4.00%	4.00%

XML

Acquisition Schedule of Effects of Changes in Parent Ownership Interest (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Combinations [Abstract]
Net Income (Loss) Attributable to Parent	$ 4,490,962	$ 2,594,490	$ 10,337,583	$ 6,954,526

XML

Investments In Securities (Schedule Of Gross Realized Gains And Losses On Securities) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized gains			$ 1,441,803	$ 1,018,217
Total, Gross realized losses			(720,637)	(178,047)
Net realized gain from securities			721,166	840,170
Impairments of other investments			(233,069)	(10,062)
Gain on other investments			113,239	26,234
Loss On Other Investments			0	(263,434)
Total			(119,830)	(247,262)
Net realized gain on investments	$ (338,631)	$ 8,689	601,336	592,908
General Obligations Of U.S. States, Territories And Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized losses			(12,319)	0
Issuer Obligations Of U S States Territories And Political Subdivisions Special Revenue [Member]
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized losses			(397)	0
Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized gains			5,417	4,286
Common Stocks And Nonredeemable Preferred Stocks
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized gains			1,436,386	1,013,931
Total, Gross realized losses			(39,017)	(178,047)
Impairments of Debt And Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Total, Gross realized losses			$ (668,904)	$ 0

XML

Acquisition Reconciliation Of Total Redeemable Equity (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Beginning balance at January 1	$ 0	$ 545,489	$ 545,489
Net income attributable to redeemable noncontrolling interest	0		23,523
Distributions to noncontrolling interest	0		(168,057)
Payments to Acquire Additional Interest in Subsidiaries	0	(515,275)	(515,275)
Redeemable noncontrolling interest resulting from subsidiary purchase	0	$ 114,320	114,320
Balance, net	$ 0		$ 0

XML

Investments In Securities (Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities) (Details)	Sep. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	$ 94,114,403	$ 104,421,050
General Obligations Of U.S. States, Territories And Political Subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	27,857,108	35,215,247
Available-for-sale, at fair value, Gross Unrealized Gains	1,064,674	1,527,794
Available-for-sale, at fair value, Gross Unrealized Losses	35,992	19,542
Available-for-sale, at fair value, Estimated Fair Value	28,885,790	36,723,499
Special Revenue Obligations Of U.S. States, Territories And Political Subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	47,745,393	46,707,033
Available-for-sale, at fair value, Gross Unrealized Gains	2,365,492	2,405,725
Available-for-sale, at fair value, Gross Unrealized Losses	84,022	55,502
Available-for-sale, at fair value, Estimated Fair Value	$ 50,026,863	$ 49,057,256
Number of Special Revenue Bonds	50	50
Corporate Debt Securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	$ 17,587,935	$ 21,576,641
Available-for-sale, at fair value, Gross Unrealized Gains	619,909	823,133
Available-for-sale, at fair value, Gross Unrealized Losses	25,455	71,339
Available-for-sale, at fair value, Estimated Fair Value	18,182,389	22,328,435
Auction Rate Securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	923,967	922,129
Available-for-sale, at fair value, Gross Unrealized Gains	15,033	16,971
Available-for-sale, at fair value, Gross Unrealized Losses	0	0
Available-for-sale, at fair value, Estimated Fair Value	939,000	939,100
Total Fixed Maturities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	94,114,403	104,421,050
Available-for-sale, at fair value, Gross Unrealized Gains	4,065,108	4,773,623
Available-for-sale, at fair value, Gross Unrealized Losses	145,469	146,383
Available-for-sale, at fair value, Estimated Fair Value	98,034,042	109,048,290
Common Stocks And Nonredeemable Preferred Stocks
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	24,247,215	24,128,753
Available-for-sale, at fair value, Gross Unrealized Gains	11,612,947	15,225,459
Available-for-sale, at fair value, Gross Unrealized Losses	724,277	99,231
Available-for-sale, at fair value, Estimated Fair Value	35,135,885	39,254,981
Equity Securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	24,247,215	24,128,753
Available-for-sale, at fair value, Gross Unrealized Gains	11,612,947	15,225,459
Available-for-sale, at fair value, Gross Unrealized Losses	724,277	99,231
Available-for-sale, at fair value, Estimated Fair Value	35,135,885	39,254,981
Certificates Of Deposit And Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	13,884,266	2,576,993
Available-for-sale, at fair value, Gross Unrealized Gains	0	0
Available-for-sale, at fair value, Gross Unrealized Losses	0	0
Available-for-sale, at fair value, Estimated Fair Value	13,884,266	2,576,993
Short-Term Investments
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-sale, at fair value, Amortized Cost	13,884,266	2,576,993
Available-for-sale, at fair value, Gross Unrealized Gains	0	0
Available-for-sale, at fair value, Gross Unrealized Losses	0	0
Available-for-sale, at fair value, Estimated Fair Value	$ 13,884,266	$ 2,576,993

XML

Earnings Per Common Share And Share Awards (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Common Share And Share Awards [Line Items]
Incremental dilutive potential common shares, calculated using treasury stock method (in shares)	4,310	3,826	4,923	5,238
Anti-dilutive shares excluded from computation of diluted earnings per share	7,500	3,000	4,500	0
SARs and options vesting period			1 year
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period			4,500	4,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block]			$ 31.16	$ 28.98
Compensation expense relating to SARs or options vesting			$ 103,000	$ 88,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 70,000		$ 70,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			5 months
Number of stock options or SARs granted where exercise price was less than market price on date of grant			0	0
Minimum
Earnings Per Common Share And Share Awards [Line Items]
SARs and options expiration period			5 years
Annual rate at which stock appreciation rights and options are exercisable and vest			10.00%
Maximum
Earnings Per Common Share And Share Awards [Line Items]
Maximum shares of Company stock to be granted to key employees or directors			500,000
SARs and options expiration period			10 years
Annual rate at which stock appreciation rights and options are exercisable and vest			20.00%

XML

Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net realized gain on investment	$ (338,631)	$ 8,689	$ 601,336	$ 592,908
Prior year service cost	1,098	554	3,293	1,663
Unrecognized loss	(878)	0	(2,635)	0
Income before Income Taxes	6,436,498	3,598,490	14,592,119	9,634,049
Tax	(1,941,000)	(1,004,000)	(4,250,000)	(2,656,000)
Net Income	4,495,498	2,594,490	10,342,119	6,978,049
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net Income	(132,155)	3,840	472,149	550,994
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Gains And Losses On Available-For-Sale Securities
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net realized gain on investment	458,058	6,534	1,390,070	840,170
Other-than-temporary impairments	(657,755)	0	(668,904)	0
Income before Income Taxes	(199,697)	6,534	721,166	840,170
Tax	68,846	(2,328)	(245,105)	(288,078)
Net Income	(130,851)	4,206	476,061	552,092
Reclassification Out Of Accumulated Other Comprehensive Income | Postretirement Benefits Plans
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Prior year service cost	(1,098)	(554)	(3,293)	(1,663)
Unrecognized loss	(878)	0	(2,635)	0
Income before Income Taxes	(1,976)	(554)	(5,928)	(1,663)
Tax	672	188	2,016	565
Net Income	$ (1,304)	$ (366)	$ (3,912)	$ (1,098)

XML

Retirement Agreements And Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components Of Net Periodic Benefits Cost

The following sets forth the net periodic benefits cost for the executive benefits for the periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Service cost – benefits earned during the year	$	4,187	$	3,666	$	12,561	$	11,000
Interest cost on the projected benefit obligation	7,693		7,618		23,079		22,854
Amortization of unrecognized prior service cost	1,098		554		3,293		1,663
Amortization of unrecognized losses	878		—		2,635		—
Net periodic benefits costs	$	13,856	$	11,838	$	41,568	$	35,517

XML

Commitments And Contingencies (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Loss Contingencies [Line Items]
Like-kind exchange deposits and reverse exchange property	$ 205,861,000	$ 82,477,000
Independence Title [Member]
Loss Contingencies [Line Items]
Net Premiums Written Percentage	12.20%	23.60%	16.40%

XML

Fair Value Measurement Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	$ 19,290,813	$ 15,826,515
Cost-basis investments	0	0
Accrued dividends and interest	1,286,710	1,063,837
Total	20,577,523	16,890,352
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	0	0
Cost-basis investments	0	0
Accrued dividends and interest	0	0
Total	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	0	0
Cost-basis investments	3,553,562	2,675,817
Accrued dividends and interest	0	0
Total	3,553,562	2,675,817
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	19,290,813	15,826,515
Cost-basis investments	3,284,868	2,516,608
Accrued dividends and interest	1,286,710	1,063,837
Total	23,862,391	19,406,960
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash	19,290,813	15,826,515
Cost-basis investments	3,553,562	2,675,817
Accrued dividends and interest	1,286,710	1,063,837
Total	$ 24,131,085	$ 19,566,169

XML

Segment Information Selected Financial Information By Segment (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) segment	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			1
Insurance And Other Services Revenue	$ 33,762,360	$ 28,434,546	$ 94,296,483	$ 87,460,103
Investment income	1,117,529	1,064,995	3,427,055	3,130,846
Net realized gain (loss) on investments	(338,631)	8,689	601,336	592,908
Total Revenues	34,541,258	29,508,230	98,324,874	91,183,857
Operating expenses	28,104,760	25,909,740	83,732,755	81,549,808
Income (loss) before income taxes	6,436,498	3,598,490	14,592,119	9,634,049
Total assets	202,545,602	195,495,300	202,545,602	195,495,300	$ 198,039,210
Title Insurance
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	32,583,093	27,381,759	90,824,523	84,257,427
Investment income	1,000,839	956,894	3,061,857	2,823,098
Net realized gain (loss) on investments	(309,874)	5,781	604,093	536,309
Total Revenues	33,274,058	28,344,434	94,490,473	87,616,834
Operating expenses	27,001,636	24,940,774	80,214,039	78,256,239
Income (loss) before income taxes	6,272,422	3,403,660	14,276,434	9,360,595
Total assets	160,754,846	152,813,417	160,754,846	152,813,417
All Other
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	1,684,088	1,517,927	4,803,604	4,418,659
Investment income	140,024	131,435	435,200	377,750
Net realized gain (loss) on investments	(28,757)	2,908	(2,757)	56,599
Total Revenues	1,795,355	1,652,270	5,236,047	4,853,008
Operating expenses	1,590,524	1,416,685	4,798,097	4,457,289
Income (loss) before income taxes	204,831	235,585	437,950	395,719
Total assets	41,790,756	42,681,883	41,790,756	42,681,883
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Insurance And Other Services Revenue	(504,821)	(465,140)	(1,331,644)	(1,215,983)
Investment income	(23,334)	(23,334)	(70,002)	(70,002)
Net realized gain (loss) on investments	0	0	0	0
Total Revenues	(528,155)	(488,474)	(1,401,646)	(1,285,985)
Operating expenses	(487,400)	(447,719)	(1,279,381)	(1,163,720)
Income (loss) before income taxes	(40,755)	(40,755)	(122,265)	(122,265)
Total assets	$ 0	$ 0	$ 0	$ 0

XML

Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transaction [Line Items]
Net premiums written	$ 30,945,532	$ 26,356,835	$ 86,372,154	$ 81,115,940
Other income	2,816,828	2,077,711	7,924,329	6,344,163
Commissions to agents	16,898,323	14,440,264	48,393,553	48,242,923
Title Insurance Agencies
Related Party Transaction [Line Items]
Net premiums written	3,451,000	3,116,000	10,436,000	8,677,000
Other income	716,000	447,000	2,230,000	1,423,000
Commissions to agents	$ 2,326,000	$ 2,109,000	$ 7,176,000	$ 5,880,000

XML

Investments In Securities (Schedule Of Fixed Maturity Securities) (Details)	Sep. 30, 2015 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 8,587,887
Due after one year through five years, Amortized Cost	47,565,502
Due five years through ten years, Amortized Cost	35,968,475
Due after ten years, Amortized Cost	1,992,539
Total, Amortized Cost	94,114,403
Due in one year or less, Fair Value	8,741,312
Due after one year through five years, Fair Value	49,628,257
Due five years through ten years, Fair Value	37,206,814
Due after ten years, Fair Value	2,457,659
Total, Fair Value	$ 98,034,042

XML

Consolidated Statements Of Cash Flows (Parenthetical) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Cash Flows [Abstract]
Non cash net unrealized loss (gain) on investments, deferred tax benefit (provision)	$ 1,691,188	$ (410,923)

XML

Fair Value Measurement Schedule Of Fair Value Assets Measured At Unobservable Inputs Reconciliation (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance at January 1	$ 939,100	$ 935,700
Redemptions and sales	0	0
Realized gain - included in net realized gain on investments	0	0
Unrealized gain - included in other comprehensive income	(100)	3,400
Ending balance, net	$ 939,000	$ 939,100

XML

Acquisition (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Reconciliation Of Total Redeemable Equity

The following table provides a reconciliation of total redeemable equity of United for the periods ended September 30, 2015 and December 31, 2014:

Changes in carrying value during the period ended:	September 30, 2015		December 31, 2014
Beginning balance at January 1	$	—	$	545,489
Net income attributable to redeemable noncontrolling interest	—		23,523
Distributions to noncontrolling interest	—		(168,057		)
Redeemable noncontrolling interest resulting from subsidiary purchase	—		(515,275		)
Adjustment to retained earnings for purchase of noncontrolling interest	—		114,320
Balance, net	$	—	$	—

XML

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets

Financial Statement Classification,	As of September 30, 2015		As of December 31, 2014
Consolidated Balance Sheets
Other investments	$	6,785,000	$	6,014,000
Premiums and fees receivable	$	815,000	$	666,000

Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income

Financial Statement Classification,	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Consolidated Statements of Income	2015		2014		2015		2014
Net premiums written	$	3,451,000	$	3,116,000	$	10,436,000	$	8,677,000
Other income	$	716,000	$	447,000	$	2,230,000	$	1,423,000
Commissions to agents	$	2,326,000	$	2,109,000	$	7,176,000	$	5,880,000

XML

Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 11,023,797	$ 12,753,330	$ 12,856,509	$ 11,347,404
Other comprehensive income before reclassifications	(1,549,501)	(628,914)	(2,777,909)	1,324,166
Amounts reclassified from accumulated other comprehensive income	132,155	(3,840)	(472,149)	(550,994)
Other comprehensive (loss) income	(1,417,346)	(632,754)	(3,250,058)	773,172
Ending balance	9,606,451	12,120,576	9,606,451	12,120,576
Unrealized Gains And Losses On Available-For-Sale Securities
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	11,099,177	12,800,951	12,934,497	11,395,757
Other comprehensive income before reclassifications	(1,549,501)	(628,914)	(2,777,909)	1,324,166
Amounts reclassified from accumulated other comprehensive income	130,851	(4,206)	(476,061)	(552,092)
Other comprehensive (loss) income	(1,418,650)	(633,120)	(3,253,970)	772,074
Ending balance	9,680,527	12,167,831	9,680,527	12,167,831
Postretirement Benefits Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(75,380)	(47,621)	(77,988)	(48,353)
Other comprehensive income before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income	1,304	366	3,912	1,098
Other comprehensive (loss) income	1,304	366	3,912	1,098
Ending balance	$ (74,076)	$ (47,255)	$ (74,076)	$ (47,255)

XML

Fair Value Measurement Schedule Of Estimated Fair Value Hierarchy Of Investments And Related Impairments Recognized (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	$ 163,350	$ 22,682
Total cost method investments, Impairment Losses	(233,069)	(10,062)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	$ 163,350	$ 22,682
Cost Method Investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation Method	Fair Value	Fair Value
Impaired	Yes	Yes
Total cost method investments, Total at Estimated Fair Value	$ 163,350	$ 22,682
Total cost method investments, Impairment Losses	(233,069)	(10,062)
Cost Method Investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	0	0
Cost Method Investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	0	0
Cost Method Investments | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cost method investments, Total at Estimated Fair Value	$ 163,350	$ 22,682

XML

Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule Of Changes In Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	11,099,177		$	(75,380	)	$	11,023,797
Other comprehensive loss before reclassifications	(1,549,501		)	—			(1,549,501		)
Amounts reclassified from accumulated other comprehensive income	130,851			1,304			132,155
Net current-period other comprehensive (loss) income	(1,418,650		)	1,304			(1,417,346		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Three Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	12,800,951		$	(47,621	)	$	12,753,330
Other comprehensive loss before reclassifications	(628,914		)	—			(628,914		)
Amounts reclassified from accumulated other comprehensive (loss) income	(4,206		)	366			(3,840		)
Net current-period other comprehensive (loss) income	(633,120		)	366			(632,754		)
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

Nine Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	12,934,497		$	(77,988	)	$	12,856,509
Other comprehensive loss before reclassifications	(2,777,909		)	—			(2,777,909		)
Amounts reclassified from accumulated other comprehensive (loss) income	(476,061		)	3,912			(472,149		)
Net current-period other comprehensive (loss) income	(3,253,970		)	3,912			(3,250,058		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Nine Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	11,395,757		$	(48,353	)	$	11,347,404
Other comprehensive income before reclassifications	1,324,166			—			1,324,166
Amounts reclassified from accumulated other comprehensive (loss) income	(552,092		)	1,098			(550,994		)
Net current-period other comprehensive income	772,074			1,098			773,172
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income

The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	458,058
Other-than-temporary impairments	(657,755		)
Total	$	(199,697	)	Net realized (loss) gain on investment
Tax	68,846			Provision for Income Taxes
Net of Tax	$	(130,851	)
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,098	)
Unrecognized loss	(878		)
Total	$	(1,976	)	(a)
Tax	672			Provision for Income Taxes
Net of Tax	$	(1,304	)
Reclassifications for the period	$	(132,155	)

Three Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	6,534
Other-than-temporary impairments	—
Total	$	6,534		Net realized (loss) gain on investment
Tax	(2,328		)	Provision for Income Taxes
Net of Tax	$	4,206
Amortization related to postretirement benefit plans:
Prior year service cost	$	(554	)
Unrecognized gain (loss)	—
Total	$	(554	)	(a)
Tax	188			Provision for Income Taxes
Net of Tax	$	(366	)
Reclassifications for the period	$	3,840

Nine Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	1,390,070
Other-than-temporary impairments	(668,904		)
Total	$	721,166		Net realized (loss) gain on investment
Tax	(245,105		)	Provision for Income Taxes
Net of Tax	$	476,061
Amortization related to postretirement benefit plans:
Prior year service cost	$	(3,293	)
Unrecognized loss	(2,635		)
Total	$	(5,928	)	(a)
Tax	2,016			Provision for Income Taxes
Net of Tax	$	(3,912	)
Reclassifications for the period	$	472,149

Nine Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	840,170
Other-than-temporary impairments	—
Total	$	840,170		Net realized (loss) gain on investment
Tax	(288,078		)	Provision for Income Taxes
Net of Tax	$	552,092
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,663	)
Unrecognized gain (loss)	—
Total	$	(1,663	)	(a)
Tax	565			Provision for Income Taxes
Net of Tax	$	(1,098	)
Reclassifications for the period	$	550,994

(a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization and accretion related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 5.

XML

Reserves For Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Liability for Title Claims and Claims Adjustment Expense	$ 37,897,000	$ 36,677,000	$ 35,360,000
Provision, charged to operations	3,621,401	5,229,716
Payments of claims, net of recoveries	$ (2,401,401)	$ (3,912,716)

XML

Consolidated Statements Of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating Activities
Net income	$ 10,342,119	$ 6,978,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	654,838	583,979
Amortization, net	542,841	458,635
Amortization related to postretirement benefits obligation	5,928	1,663
Share-based compensation expense related to stock options	102,707	88,291
Net (gain) loss on the disposals of property	(30,374)	6,487
Net realized gain on investments	(601,336)	(592,908)
Net earnings from other investments	(1,774,927)	(990,657)
Provision for claims	3,621,401	4,177,478
Provision for deferred income taxes	1,909,000	1,468,000
Changes in assets and liabilities:
(Increase) decrease in receivables	(457,484)	261,128
Increase in other assets	(1,110,322)	(1,407,762)
Increase in current income taxes recoverable	0	(1,257,252)
Increase (decrease) in accounts payable and accrued liabilities	1,150,634	(1,640,499)
Increase in current income taxes payable	156,487	0
Payments of claims, net of recoveries	(2,401,401)	(3,285,478)
Net cash provided by operating activities	12,110,111	4,849,154
Investing Activities
Purchases of available-for-sale securities	(5,794,149)	(13,572,217)
Purchases of short-term investments	(11,642,357)	(2,923,269)
Purchases of other investments	(3,164,415)	(1,036,110)
Proceeds from sales and maturities of available-for-sale securities	16,212,924	10,321,679
Proceeds from sales and maturities of short-term investments	335,084	4,694,893
Proceeds from sales and distributions of other investments	3,167,494	1,050,427
Proceeds from sales of other assets	113,238	26,233
Purchase of subsidiary	(72,600)	0
Purchase of redeemable noncontrolling interest of subsidiary	0	(515,275)
Purchases of property	(2,313,052)	(1,649,412)
Proceeds from the sale of property	74,395	15,400
Net cash used in investing activities	(3,083,438)	(3,587,651)
Financing Activities
Repurchases of common stock	(5,166,846)	(652,657)
Exercises of stock options and SARs	54,988	27,100
Distributions to noncontrolling interest	0	(168,057)
Excess tax benefits related to exercise of stock options and SARs	26,875	15,999
Dividends paid	(477,392)	(488,127)
Net cash used in financing activities	(5,562,375)	(1,265,742)
Net Increase (Decrease) in Cash and Cash Equivalents	3,464,298	(4,239)
Cash and Cash Equivalents, Beginning of Period	15,826,515	23,626,761
Cash and Cash Equivalents, End of Period	19,290,813	23,622,522
Cash Paid During the Year for:
Income tax payments, net	2,727,700	2,443,000
Non cash net unrealized loss (gain) on investments, net of deferred tax benefit (provision) of $1,691,188 and $(410,923) for 2015 and 2014, respectively	$ 3,253,970	$ (772,074)

XML

Reserves For Claims Summary Of The Company's Loss Reserves (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]
Known title claims	$ 5,276,778	$ 5,364,645
IBNR	32,620,222	31,312,355
Total loss reserves	$ 37,897,000	$ 36,677,000	$ 35,360,000
% of Known title claims	13.90%	14.60%
% of IBNR	86.10%	85.40%
% of Total loss reserves	100.00%	100.00%

XML

Fair Value Measurement Schedule Of Assumptions Used To Determine Fair Value (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Cumulative probability of earning maximum rate until maturity	0.00%	0.00%
Cumulative probability of principle returned prior to maturity	95.20%	95.20%
Cumulative probability of default at some future point	4.80%	4.80%

XML

Acquisition (Details) - USD ($)	Aug. 01, 2015	May. 21, 2014	Apr. 02, 2012	Sep. 30, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage	65.00%
1st Investors Title Agency [Member]
Business Acquisition [Line Items]
Ownership percentage acquired	20.00%
Business Combination, Consideration Transferred	$ 72,600
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage	45.00%
United Title Agency [Member]
Business Acquisition [Line Items]
Ownership percentage acquired		30.00%	70.00%
Business acquisition, remaining ownership interest			30.00%
Accumulated amortization of intangible assets				$ 243,894	$ 191,631
Net intangible assets				$ 1,238,006	$ 1,290,269
United Title Agency [Member] | 70%
Business Acquisition [Line Items]
Business Acquisition Purchase Price			$ 1,041,250
United Title Agency [Member] | 30%
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 515,275
United Title Agency [Member] | Non-Compete Contract
Business Acquisition [Line Items]
Intangible assets acquired			$ 645,685
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			10 years
United Title Agency [Member] | Referral Relationships
Business Acquisition [Line Items]
Intangible assets acquired			$ 836,215
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			12 years

XML

Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investments in securities:
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015: $94,114,403; 2014: $104,421,050)	$ 98,034,042	$ 109,048,290
Equity securities, available-for-sale, at fair value (cost: 2015: $24,247,215; 2014: $24,128,753)	35,135,885	39,254,981
Short-term investments	13,884,266	2,576,993
Other investments	10,069,708	8,530,929
Total investments	157,123,901	159,411,193
Cash and cash equivalents	19,290,813	15,826,515
Premium and fees receivable	9,067,775	8,544,183
Accrued interest and dividends	1,286,710	1,063,837
Prepaid expenses and other assets	8,599,846	7,732,677
Property, net	7,176,557	5,460,805
Total Assets	202,545,602	198,039,210
Liabilities:
Reserves for claims	37,897,000	36,677,000
Accounts payable and accrued liabilities	19,441,453	18,290,819
Current income taxes payable	248,679	92,192
Deferred income taxes, net	5,635,321	5,415,493
Total liabilities	63,222,453	60,475,504
Commitments and Contingencies	0	0
Stockholders' Equity:
Preferred stock (1,000,000 authorized shares; no shares issued)	0	0
Common stock - no par value (10,000,000 authorized shares; 1,953,418 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company's subsidiary)	1	1
Retained earnings	129,585,111	124,707,196
Accumulated other comprehensive income	9,606,451	12,856,509
Total stockholders' equity	139,191,563	137,563,706
Stockholders' Equity Attributable to Noncontrolling Interest	131,586	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	139,323,149	137,563,706
Total Liabilities and Stockholders' Equity	$ 202,545,602	$ 198,039,210

XML

Investments In Securities (Details)	9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) security	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) security
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Available-for-sale securities	$ 16,485,217		$ 15,238,479
Unrealized losses	$ 869,746		$ 245,614
Number of securities with unrealized losses | security	35		25
Other-than-temporary impairment charges	$ 668,904	$ 0
Fixed Maturities
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Available-for-sale securities	12,056,020		$ 14,166,991
Unrealized losses	145,469		146,383
Equity Securities
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items]
Available-for-sale securities	4,429,197		1,071,488
Unrealized losses	$ 724,277		$ 99,231

XML

Consolidated Statements Of Stockholders' Equity - USD ($)	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interest [Member]
Balance, beginning of year at Dec. 31, 2013	$ 128,062,154	$ 1	$ 116,714,749	$ 11,347,404	$ 0
Balance, beginning of year, shares at Dec. 31, 2013		2,037,135
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	6,954,526		6,954,526
Dividends	(488,127)		(488,127)
Shares of common stock repurchased and retired (in shares)		(9,824)
Shares of common stock repurchased and retired	(652,657)		(652,657)
Stock options and stock appreciation rights exercised (in shares)		1,507
Stock options and stock appreciation rights exercised	27,100		27,100
Share-based compensation expense	88,291		88,291
Amortization related to postretirement health benefits	1,098			1,098
Net unrealized gain (loss) on investments	772,074			772,074
Temporary equity, interest resulting from subsidiary purchase	(114,320)		(114,320)
Income tax benefit from share-based compensation	15,999		15,999
Balance, end of year at Sep. 30, 2014	134,666,138	$ 1	122,545,561	12,120,576	0
Balance, end of year, shares at Sep. 30, 2014		2,028,818
Balance, beginning of year at Dec. 31, 2013	128,062,154	$ 1	116,714,749	11,347,404	0
Balance, beginning of year, shares at Dec. 31, 2013		2,037,135
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Temporary equity, interest resulting from subsidiary purchase	(114,320)
Balance, end of year at Dec. 31, 2014	137,563,706	$ 1	124,707,196	12,856,509	0
Balance, end of year, shares at Dec. 31, 2014		2,023,270
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	137,563,706
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income attributable to the Company	10,337,583		10,337,583
Dividends	(477,392)		(477,392)
Shares of common stock repurchased and retired (in shares)		(72,044)
Shares of common stock repurchased and retired	(5,166,846)		(5,166,846)
Stock options and stock appreciation rights exercised (in shares)		2,192
Stock options and stock appreciation rights exercised	54,988		54,988
Share-based compensation expense	102,707		102,707
Amortization related to postretirement health benefits	3,912			3,912
Net unrealized gain (loss) on investments	(3,253,970)			(3,253,970)
Noncontrolling Interest, Increase from Business Combination	127,050				127,050
Net Income (Loss) Attributable to Noncontrolling Interest	4,536				4,536
Temporary equity, interest resulting from subsidiary purchase	0
Income tax benefit from share-based compensation	26,875		26,875
Balance, end of year at Sep. 30, 2015	139,191,563
Balance, end of year, shares at Sep. 30, 2015		1,953,418
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ 139,323,149	$ 1	$ 129,585,111	$ 9,606,451	$ 131,586

XML

Earnings Per Common Share And Share Awards Summary Of Share-Based Award Transactions (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number Of Shares, Options exercised	(1,500)	(1,000)
Share Based Compensation Arrangement By Share Based Payment Award, Options, Unvested, Number	2,250
Share Based Compensation Arrangement By Share Based Payment Award, Options, Unvested, Weighted Average Exercise Price	$ 73.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Options exercised	$ 36.79	$ 27.21
StockOptionsAndStockAppreciationRightsSARS [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number Of Shares, Outstanding Beginning Balance	21,000	19,000
Number Of Shares, Options/SARs cancelled/forfeited/expired	0	0
Number Of Shares, Outstanding Ending Balance	22,000	21,000	19,000
Number Of Shares, Exercisable as of September 30, 2015	19,750
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Outstanding Beginning Balance	$ 51.30	$ 45.74
Weighted Average Exercise Price, Options/SARs cancelled/forfeited/expired	0.00	0.00
Weighted Average Exercise Price, Outstanding Ending Balance	57.04	$ 51.30	$ 45.74
Weighted Average Exercise Price, Exercisable as of September 30, 2015	$ 55.23
Average Remaining Contractual Term, Outstanding Beginning Balance	4 years 2 months 4 days	3 years 7 months 20 days	3 years 5 months 4 days
Average Remaining Contractual Term, Outstanding Ending Balance	4 years 2 months 4 days	3 years 7 months 20 days	3 years 5 months 4 days
Average Remaining Contractual Term, Exercisable as of September 30, 2015	3 years 10 months 24 days
Share Based Compensation Arrangement By Share Based Payment Award, Options, Unvested, Weighted Average Remaining Contractual Term	6 years 7 months 20 days
Aggregate Intrinsic Value, Outstanding Beginning Balance	$ 453,510	$ 669,610
Aggregate Intrinsic Value, Outstanding Ending Balance	355,455	$ 453,510	$ 669,610
Aggregate Intrinsic Value, Exercisable as of September 30, 2015	355,005
Share Based Compensation Arrangement By Share Based Payment Award, Options, Unvested, Intrinsic Value	$ 450
SARs
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number Of Shares, SARs granted	4,500	4,500
Number Of Shares, Options exercised	(2,000)	(1,500)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, SARs granted	$ 73.00	$ 68.70
Weighted Average Exercise Price, Options exercised	$ 47.88	$ 49.04

XML

Reserves For Claims (Tables)

9 Months Ended

Sep. 30, 2015

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Summary Of Transactions In Reserves For Claims

Transactions in the reserves for claims for the nine months ended September 30, 2015 and the year ended December 31, 2014 are summarized as follows:

	September 30, 2015			December 31, 2014
Balance, beginning of period	$	36,677,000		$	35,360,000
Provision, charged to operations	3,621,401			5,229,716
Payments of claims, net of recoveries	(2,401,401		)	(3,912,716		)
Ending balance	$	37,897,000		$	36,677,000

Summary Of The Company's Loss Reserves

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

	September 30, 2015		%	December 31, 2014		%
Known title claims	$	5,276,778	13.9	$	5,364,645	14.6
IBNR	32,620,222		86.1	31,312,355		85.4
Total loss reserves	$	37,897,000	100.0	$	36,677,000	100.0

XML

Earnings Per Common Share And Share Awards Share Awards Share-Based Assumptions (Details)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	7 years	6 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Weighted Average Volatility Rate	40.70%	39.90%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.00%	2.10%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.40%	0.40%

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Selected Financial Information About The Company's Operations By Segment

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Title Insurance			All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	32,583,093		$	1,684,088		$	(504,821	)	$	33,762,360
Investment income	1,000,839			140,024			(23,334		)	1,117,529
Net realized loss on investments	(309,874		)	(28,757		)	—			(338,631		)
Total revenues	$	33,274,058		$	1,795,355		$	(528,155	)	$	34,541,258
Operating expenses	27,001,636			1,590,524			(487,400		)	28,104,760
Income before income taxes	$	6,272,422		$	204,831		$	(40,755	)	$	6,436,498
Total assets	$	160,754,846		$	41,790,756		$	—		$	202,545,602

Three Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	27,381,759	$	1,517,927	$	(465,140	)	$	28,434,546
Investment income	956,894		131,435		(23,334		)	1,064,995
Net realized gain on investments	5,781		2,908		—			8,689
Total revenues	$	28,344,434	$	1,652,270	$	(488,474	)	$	29,508,230
Operating expenses	24,940,774		1,416,685		(447,719		)	25,909,740
Income before income taxes	$	3,403,660	$	235,585	$	(40,755	)	$	3,598,490
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

Nine Months Ended September 30, 2015	Title Insurance		All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	90,824,523	$	4,803,604		$	(1,331,644	)	$	94,296,483
Investment income	3,061,857		435,200			(70,002		)	3,427,055
Net realized gain (loss) on investments	604,093		(2,757		)	—			601,336
Total revenues	$	94,490,473	$	5,236,047		$	(1,401,646	)	$	98,324,874
Operating expenses	80,214,039		4,798,097			(1,279,381		)	83,732,755
Income before income taxes	$	14,276,434	$	437,950		$	(122,265	)	$	14,592,119
Total assets	$	160,754,846	$	41,790,756		$	—		$	202,545,602

Nine Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	84,257,427	$	4,418,659	$	(1,215,983	)	$	87,460,103
Investment income	2,823,098		377,750		(70,002		)	3,130,846
Net realized gain on investments	536,309		56,599		—			592,908
Total revenues	$	87,616,834	$	4,853,008	$	(1,285,985	)	$	91,183,857
Operating expenses	78,256,239		4,457,289		(1,163,720		)	81,549,808
Income before income taxes	$	9,360,595	$	395,719	$	(122,265	)	$	9,634,049
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

XML

Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Stockholders' Equity [Abstract]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.08	$ 0.08	$ 0.24	$ 0.24

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Fixed maturities, available-for-sale, amortized cost	$ 94,114,403	$ 104,421,050
Equity securities, available-for-sale, cost	$ 24,275,215	$ 24,128,753
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, no par value
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	1,953,418	2,023,270
Common stock, shares outstanding	1,953,418	2,023,270
Common stock, held by Company's subsidiary	291,676	291,676

XML

Commitments And Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Legal Proceedings – The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company’s consolidated financial condition or operations.

Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or operations.

Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits.

Like-Kind Exchanges Proceeds – In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $205,861,000 and $82,477,000 as of September 30, 2015 and December 31, 2014, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as other revenue rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments.

Agency Relationship – On July 1, 2015, Title Resource Group LLC's wholly owned subsidiary, title insurer Texas American Title Company, acquired the assets of ITCOA, LLC, which does business throughout Texas as Independence Title. For the nine months ended September 30, 2015 and the twelve months ended December 31, 2014 and 2013, Independence Title originated 12.2%, 23.6% and 16.4%, respectively, of the net premiums written for the Company. Independence Title is under no legal commitment to remit a minimum amount of premiums to the Company, and could cease doing so at any time. A significant decline in business originated by Independence Title for the Company, whether due to that business being diverted to its new title insurer owner or otherwise, could have a material negative impact on the Company's premiums written. Any reduction in premiums would be largely offset by related reductions in commissions, premium and income taxes, the provision for claims and other operating expenses. The Company did not have any ownership interest in Independence Title before or after the July 1, 2015 acquisition.

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 15, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2015
Entity Registrant Name	INVESTORS TITLE CO
Entity Central Index Key	0000720858
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		1,953,217

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these limited liability companies. The following table sets forth the approximate values by year found within each financial statement classification:

Financial Statement Classification,	As of September 30, 2015		As of December 31, 2014
Consolidated Balance Sheets
Other investments	$	6,785,000	$	6,014,000
Premiums and fees receivable	$	815,000	$	666,000

Financial Statement Classification,	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Consolidated Statements of Income	2015		2014		2015		2014
Net premiums written	$	3,451,000	$	3,116,000	$	10,436,000	$	8,677,000
Other income	$	716,000	$	447,000	$	2,230,000	$	1,423,000
Commissions to agents	$	2,326,000	$	2,109,000	$	7,176,000	$	5,880,000

XML

Consolidated Statements Of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Net premiums written	$ 30,945,532	$ 26,356,835	$ 86,372,154	$ 81,115,940
Investment income - interest and dividends	1,117,529	1,064,995	3,427,055	3,130,846
Net realized (loss) gain on investments	(338,631)	8,689	601,336	592,908
Other	2,816,828	2,077,711	7,924,329	6,344,163
Total Revenues	34,541,258	29,508,230	98,324,874	91,183,857
Operating Expenses:
Commissions to agents	16,898,323	14,440,264	48,393,553	48,242,923
Provision for claims	703,979	1,507,814	3,621,401	4,177,478
Salaries, employee benefits and payroll taxes	6,957,874	6,609,425	21,101,955	19,250,116
Office occupancy and operations	1,342,288	1,257,009	4,089,806	3,683,980
Business development	568,189	552,215	1,633,358	1,581,872
Filing fees, franchise and local taxes	134,880	233,079	572,621	648,022
Premium and retaliatory taxes	573,336	491,927	1,684,674	1,332,492
Professional and contract labor fees	661,879	621,305	1,926,469	1,976,272
Other	264,012	196,702	708,918	656,653
Total Operating Expenses	28,104,760	25,909,740	83,732,755	81,549,808
Income before Income Taxes	6,436,498	3,598,490	14,592,119	9,634,049
Provision for Income Taxes	1,941,000	1,004,000	4,250,000	2,656,000
Net Income	4,495,498	2,594,490	10,342,119	6,978,049
Net Income Attributable to Noncontrolling Interests	(4,536)		(4,536)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		0		23,523
Net Income Attributable to the Company	$ 4,490,962	$ 2,594,490	$ 10,337,583	$ 6,954,526
Basic Earnings per Common Share	$ 2.28	$ 1.28	$ 5.18	$ 3.42
Weighted Average Shares Outstanding – Basic	1,967,923	2,028,818	1,995,120	2,033,637
Diluted Earnings per Common Share	$ 2.28	$ 1.28	$ 5.17	$ 3.41
Weighted Average Shares Outstanding – Diluted	1,972,233	2,032,644	2,000,043	2,038,875
Cash Dividends Paid per Common Share	$ 0.08	$ 0.08	$ 0.24	$ 0.24

XML

Earnings Per Common Share And Share Awards

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Common Share And Share Awards

Earnings Per Common Share and Share Awards

Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company 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 services that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in retained earnings, 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 4,310 and 3,826 for the three months ended September 30, 2015 and 2014, respectively, and 4,923 and 5,238 for the nine months ended September 30, 2015 and 2014, respectively.

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months endedSeptember 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income attributable to the Company	$	4,490,962	$	2,594,490	$	10,337,583	$	6,954,526
Weighted average common shares outstanding – Basic	1,967,923		2,028,818		1,995,120		2,033,637
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled)	4,310		3,826		4,923		5,238
Weighted average common shares outstanding – Diluted	1,972,233		2,032,644		2,000,043		2,038,875
Basic earnings per common share	$	2.28	$	1.28	$	5.18	$	3.42
Diluted earnings per common share	$	2.28	$	1.28	$	5.17	$	3.41

There were 7,500 and 3,000 potential shares excluded from the computation of diluted earnings per share for the three months ended September 30, 2015 and 2014, respectively. There were 4,500 and 0 potential shares excluded from the computation of diluted earnings per share for the nine months ended September 30, 2015 and 2014, respectively. These potential shares were anti-dilutive because the underlying share awards had strike prices that exceeded the fair market value.

The Company has adopted employee 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 generally expire in five to ten years from the date of grant and are exercisable and vest: immediately; within one year; or at 10% to 20% per year beginning on the date of grant. All SARs issued to date have been share-settled only.

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, 2014	19,000		$	45.74	3.43	$	669,610
SARs granted	4,500		68.70
SARs exercised	(1,500	)	49.04
Options exercised	(1,000	)	27.21
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of December 31, 2014	21,000		$	51.30	3.64	$	453,510
SARs granted	4,500		73.00
SARs exercised	(2,000	)	47.88
Options exercised	(1,500	)	36.79
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of September 30, 2015	22,000		$	57.04	4.18	$	355,455
Exercisable as of September 30, 2015	19,750		$	55.23	3.90	$	355,005
Unvested as of September 30, 2015	2,250		$	73.00	6.64	$	450

During the second quarters of both 2015 and 2014, the Company issued a total of 4,500 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. 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 assumed for the expected life of the award is based on the U.S. Treasury yield curve at the time of the grant. The weighted average fair values for the SARs issued during 2015 and 2014 were $31.16 and $28.98, respectively.

The weighted average fair values for SARs issued during 2015 and 2014 were estimated using the weighted average assumptions shown in the table below:

	2015		2014
Expected life in years	7.0		6.9
Volatility	40.7	%	39.9	%
Interest rate	2.0	%	2.1	%
Yield rate	0.4	%	0.4	%

There was approximately $103,000 and $88,000 of compensation expense relating to SARs or options vesting on or before September 30, 2015 and 2014, respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of September 30, 2015, there was approximately $70,000 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 period of approximately 5 months based on weighted average durations.

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

XML

Reserves For Claims

9 Months Ended

Sep. 30, 2015

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserves For Claims

Reserves for Claims

Transactions in the reserves for claims for the nine months ended September 30, 2015 and the year ended December 31, 2014 are summarized as follows:

	September 30, 2015			December 31, 2014
Balance, beginning of period	$	36,677,000		$	35,360,000
Provision, charged to operations	3,621,401			5,229,716
Payments of claims, net of recoveries	(2,401,401		)	(3,912,716		)
Ending balance	$	37,897,000		$	36,677,000

The total reserve for all reported and unreported losses the Company incurred through September 30, 2015 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 claims that have been incurred but not yet reported (“IBNR”). 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 title insurance policies issued through September 30, 2015. Management 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 IBNR, follows:

	September 30, 2015		%	December 31, 2014		%
Known title claims	$	5,276,778	13.9	$	5,364,645	14.6
IBNR	32,620,222		86.1	31,312,355		85.4
Total loss reserves	$	37,897,000	100.0	$	36,677,000	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 Company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property.

XML

Earnings Per Common Share And Share Awards (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computation Of Basic And Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months endedSeptember 30:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net income attributable to the Company	$	4,490,962	$	2,594,490	$	10,337,583	$	6,954,526
Weighted average common shares outstanding – Basic	1,967,923		2,028,818		1,995,120		2,033,637
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled)	4,310		3,826		4,923		5,238
Weighted average common shares outstanding – Diluted	1,972,233		2,032,644		2,000,043		2,038,875
Basic earnings per common share	$	2.28	$	1.28	$	5.18	$	3.42
Diluted earnings per common share	$	2.28	$	1.28	$	5.17	$	3.41

Summary Of Share-Based Award Transactions

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, 2014	19,000		$	45.74	3.43	$	669,610
SARs granted	4,500		68.70
SARs exercised	(1,500	)	49.04
Options exercised	(1,000	)	27.21
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of December 31, 2014	21,000		$	51.30	3.64	$	453,510
SARs granted	4,500		73.00
SARs exercised	(2,000	)	47.88
Options exercised	(1,500	)	36.79
Options/SARs canceled/forfeited/expired	—		—
Outstanding as of September 30, 2015	22,000		$	57.04	4.18	$	355,455
Exercisable as of September 30, 2015	19,750		$	55.23	3.90	$	355,005
Unvested as of September 30, 2015	2,250		$	73.00	6.64	$	450

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The weighted average fair values for SARs issued during 2015 and 2014 were estimated using the weighted average assumptions shown in the table below:

	2015		2014
Expected life in years	7.0		6.9
Volatility	40.7	%	39.9	%
Interest rate	2.0	%	2.1	%
Yield rate	0.4	%	0.4	%

XML

Acquisition

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisition

Acquisitions

Effective August 1, 2015, a subsidiary of the Company, ITIC, acquired a 20% ownership interest in 1st Investors Title Agency, LLC ("1st Investors") for a purchase price of $72,600. 1st Investors, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. Prior to August 1, 2015, the Company had an ownership interest in 1st Investors of 45%. The Company's Consolidated Financial Statements include the accounts and operations of 1st Investors, based on the Company's resulting 65% ownership interest at September 30, 2015. There were no intangible assets or goodwill recorded as a result of the acquisition.

In January 2012, ITIC entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC (“United”). United, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. On April 2, 2012, ITIC purchased a 70% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining 30% interest at a later date. ITIC purchased the 70% interest for a purchase price of $1,041,250. On May 21, 2014, ITIC purchased the remaining 30% ownership interest in United for an additional $515,275, making United a wholly owned subsidiary of ITC.

ITIC's purchase of United was accounted for using the acquisition method required by ASC 805, Business Combinations. Accordingly, the Company recognized the required identifiable intangible assets of United. There was no goodwill recorded as a result of the acquisition. The fair values of intangible assets, all Level 3 inputs, are principally based on values obtained from a third party valuation service. At closing of the initial acquisition, intangible assets included $645,685 relating to a non-compete contract resulting from the acquisition and $836,215 from referral relationships. The non-compete contract is being amortized over a 10-year period using the straight-line method, starting at a future date when the related employment agreement is terminated. The referral relationships are being amortized over a 12-year period using the straight-line method. At September 30, 2015 and December 31, 2014, accumulated amortization of intangible assets was $243,894 and $191,631, respectively. Net intangible assets of $1,238,006 and $1,290,269 are categorized as prepaid expenses and other assets in the Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that no events or changes in circumstances occurred that would indicate the carrying amount may not be recoverable, and therefore determined that the intangible assets assigned to United were not impaired at September 30, 2015.

A reconciliation of the noncontrolling interest equity of 1st Investors is presented in the Consolidated Statements of Stockholders' Equity. The following table provides a reconciliation of total redeemable equity of United for the periods ended September 30, 2015 and December 31, 2014:

Changes in carrying value during the period ended:	September 30, 2015		December 31, 2014
Beginning balance at January 1	$	—	$	545,489
Net income attributable to redeemable noncontrolling interest	—		23,523
Distributions to noncontrolling interest	—		(168,057		)
Redeemable noncontrolling interest resulting from subsidiary purchase	—		(515,275		)
Adjustment to retained earnings for purchase of noncontrolling interest	—		114,320
Balance, net	$	—	$	—

XML

Fair Value Measurement

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

Valuation of Financial Assets and Liabilities

The FASB has established a valuation hierarchy for disclosure of the inputs used to measure fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls.

Debt and Equity Securities

The Level 1 category includes equity securities that are measured at fair value using quoted active market prices.

The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds. Fair value is principally based on market values obtained from a third party pricing service. Factors that are used in determining fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of September 30, 2015 and December 31, 2014, the Company did not adjust any Level 2 fair values.

A number of the Company’s investment grade corporate bonds are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data.

The Level 3 category only includes the Company’s investments in student loan auction rate securities (“ARS”) because quoted prices are unavailable due to the failure of auctions. The Company’s ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of these securities was $1,000,000 as of September 30, 2015 and December 31, 2014, with approximately 97.0% as of both September 30, 2015 and December 31, 2014, guaranteed by the U.S. Department of Education.

Some of the inputs to ARS valuation are unobservable in the market and are significant – therefore, the Company utilizes another third party pricing service to assist in the determination of the fair market value of these securities. This service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates. The following table summarizes some key assumptions the service used to determine the fair value of the ARS portfolio as of September 30, 2015 and December 31, 2014:

	2015	2014
Cumulative probability of earning maximum rate until maturity	—%	—%
Cumulative probability of principal returned prior to maturity	95.2%	95.2%
Cumulative probability of default at some future point	4.8%	4.8%

Significant increases or decreases in any of the inputs in isolation could result in significant changes to the fair value measurement. Generally, increases in default probabilities and liquidity risk premiums lower the fair market value while increases in principal being returned and earning maximum rates increase fair market values.

Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS. The Company records the fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value. In 2015 and 2014, the difference in the low and high values of the ranges was approximately one to four percent of the carrying value of the Company’s ARS.

The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of September 30, 2015 and December 31, 2014. The table does not include cash on hand and also does not include assets that are measured at historical cost or any basis other than fair value. Level 3 assets are comprised solely of ARS.

As of September 30, 2015	Level 1		Level 2		Level 3		Total
Short-term investments	$	13,884,266	$	—	$	—	$	13,884,266
Equity securities:
Common stock	35,135,885		—		—		35,135,885
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		78,912,653		—		78,912,653
Corporate debt securities*	—		18,182,389		939,000		19,121,389
Total	$	49,020,151	$	97,095,042	$	939,000	$	147,054,193

As of December 31, 2014	Level 1		Level 2		Level 3		Total
Short-term investments	$	2,576,993	$	—	$	—	$	2,576,993
Equity securities:
Common stock and nonredeemable preferred stock	39,254,981		—		—		39,254,981
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		85,780,755		—		85,780,755
Corporate debt securities*	—		22,328,435		939,100		23,267,535
Total	$	41,831,974	$	108,109,190	$	939,100	$	150,880,264

*Denotes fair market value obtained from pricing services.

There were no transfers into or out of Levels 1, 2 or 3 during the period.

To help ensure that fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and fair values consistent with ASC 820.

Other Financial Instruments

The Company uses various financial instruments in the normal course of its business. In the measurement of the fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments.

In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions:

Cash and cash equivalents

The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments.

Cost-basis investments

The estimated fair value of cost-basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair value of the underlying entity. These items are included in other investments in the Consolidated Balance Sheets.

Accrued dividends and interest

The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets.

The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of September 30, 2015 and December 31, 2014 are presented in the following table:

As of September 30, 2015	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	19,290,813	$	19,290,813	$	19,290,813	$	—	$	—
Cost-basis investments	3,284,868		3,553,562		—		—		3,553,562
Accrued dividends and interest	1,286,710		1,286,710		1,286,710		—		—
Total	$	23,862,391	$	24,131,085	$	20,577,523	$	—	$	3,553,562

As of December 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	15,826,515	$	15,826,515	$	15,826,515	$	—	$	—
Cost-basis investments	2,516,608		2,675,817		—		—		2,675,817
Accrued dividends and interest	1,063,837		1,063,837		1,063,837		—		—
Total	$	19,406,960	$	19,566,169	$	16,890,352	$	—	$	2,675,817

The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the period ended September 30, 2015 and the year ended December 31, 2014:

Changes in fair value during the period ended:	2015			2014
Beginning balance at January 1	$	939,100		$	935,700
Redemptions and sales	—			—
Realized gain – included in net realized (loss) gain on investments	—			—
Unrealized loss – included in other comprehensive (loss) income	(100		)	3,400
Ending balance, net	$	939,000		$	939,100

Certain cost-basis investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of September 30, 2015 and December 31, 2014. The following table summarizes the corresponding estimated fair value hierarchy of such investments at September 30, 2015 and December 31, 2014 and the related impairments recognized:

As of September 30, 2015	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	163,350	$	163,350	$	(233,069	)
Total cost-basis investments			$	—	$	—	$	163,350	$	163,350	$	(233,069	)

As of December 31, 2014	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	22,682	$	22,682	$	(10,062	)
Total cost-basis investments			$	—	$	—	$	22,682	$	22,682	$	(10,062	)

XML

Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

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.

Provided below is selected financial information about the Company's operations by segment for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Title Insurance			All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	32,583,093		$	1,684,088		$	(504,821	)	$	33,762,360
Investment income	1,000,839			140,024			(23,334		)	1,117,529
Net realized loss on investments	(309,874		)	(28,757		)	—			(338,631		)
Total revenues	$	33,274,058		$	1,795,355		$	(528,155	)	$	34,541,258
Operating expenses	27,001,636			1,590,524			(487,400		)	28,104,760
Income before income taxes	$	6,272,422		$	204,831		$	(40,755	)	$	6,436,498
Total assets	$	160,754,846		$	41,790,756		$	—		$	202,545,602

Three Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	27,381,759	$	1,517,927	$	(465,140	)	$	28,434,546
Investment income	956,894		131,435		(23,334		)	1,064,995
Net realized gain on investments	5,781		2,908		—			8,689
Total revenues	$	28,344,434	$	1,652,270	$	(488,474	)	$	29,508,230
Operating expenses	24,940,774		1,416,685		(447,719		)	25,909,740
Income before income taxes	$	3,403,660	$	235,585	$	(40,755	)	$	3,598,490
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

Nine Months Ended September 30, 2015	Title Insurance		All Other			Intersegment Eliminations			Total
Insurance and other services revenues	$	90,824,523	$	4,803,604		$	(1,331,644	)	$	94,296,483
Investment income	3,061,857		435,200			(70,002		)	3,427,055
Net realized gain (loss) on investments	604,093		(2,757		)	—			601,336
Total revenues	$	94,490,473	$	5,236,047		$	(1,401,646	)	$	98,324,874
Operating expenses	80,214,039		4,798,097			(1,279,381		)	83,732,755
Income before income taxes	$	14,276,434	$	437,950		$	(122,265	)	$	14,592,119
Total assets	$	160,754,846	$	41,790,756		$	—		$	202,545,602

Nine Months Ended September 30, 2014	Title Insurance		All Other		Intersegment Eliminations			Total
Insurance and other services revenues	$	84,257,427	$	4,418,659	$	(1,215,983	)	$	87,460,103
Investment income	2,823,098		377,750		(70,002		)	3,130,846
Net realized gain on investments	536,309		56,599		—			592,908
Total revenues	$	87,616,834	$	4,853,008	$	(1,285,985	)	$	91,183,857
Operating expenses	78,256,239		4,457,289		(1,163,720		)	81,549,808
Income before income taxes	$	9,360,595	$	395,719	$	(122,265	)	$	9,634,049
Total assets	$	152,813,417	$	42,681,883	$	—		$	195,495,300

XML

Retirement Agreements And Other Postretirement Benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Agreements And Other Postretirement Benefits

Retirement Agreements and Other Postretirement Benefits

The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement estimated to total $7,731,000 and $7,111,000 as of September 30, 2015 and December 31, 2014, respectively. The executive employee benefits include health insurance, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the Consolidated Balance Sheets. The following sets forth the net periodic benefits cost for the executive benefits for the periods ended September 30, 2015 and 2014:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Service cost – benefits earned during the year	$	4,187	$	3,666	$	12,561	$	11,000
Interest cost on the projected benefit obligation	7,693		7,618		23,079		22,854
Amortization of unrecognized prior service cost	1,098		554		3,293		1,663
Amortization of unrecognized losses	878		—		2,635		—
Net periodic benefits costs	$	13,856	$	11,838	$	41,568	$	35,517

XML

Investments In Securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investments In Securities

Investments in Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:

As of September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	27,857,108	$	1,064,674	$	35,992	$	28,885,790
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,745,393		2,365,492		84,022		50,026,863
Corporate debt securities	17,587,935		619,909		25,455		18,182,389
Auction rate securities	923,967		15,033		—		939,000
Total	$	94,114,403	$	4,065,108	$	145,469	$	98,034,042
Equity securities, available-for-sale, at fair value:
Common stocks	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Total	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Short-term investments:
Money market funds and certificates of deposit	$	13,884,266	$	—	$	—	$	13,884,266
Total	$	13,884,266	$	—	$	—	$	13,884,266

As of December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	35,215,247	$	1,527,794	$	19,542	$	36,723,499
Special revenue issuer obligations of U.S. states, territories and political subdivisions	46,707,033		2,405,725		55,502		49,057,256
Corporate debt securities	21,576,641		823,133		71,339		22,328,435
Auction rate securities	922,129		16,971		—		939,100
Total	$	104,421,050	$	4,773,623	$	146,383	$	109,048,290
Equity securities, available-for-sale, at fair value:
Common stocks and nonredeemable preferred stocks	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Total	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Short-term investments:
Money market funds and certificates of deposit	$	2,576,993	$	—	$	—	$	2,576,993
Total	$	2,576,993	$	—	$	—	$	2,576,993

The special revenue category for both periods presented includes at least 50 individual bonds with revenue sources from a variety of industry sectors.

The scheduled maturities of fixed maturity securities at September 30, 2015 were as follows:

	Available-for-Sale
	Amortized Cost		Fair Value
Due in one year or less	$	8,587,887	$	8,741,312
Due after one year through five years	47,565,502		49,628,257
Due five years through ten years	35,968,475		37,206,814
Due after ten years	1,992,539		2,457,659
Total	$	94,114,403	$	98,034,042

Realized gains and losses on investments for the nine months endedSeptember 30 are summarized as follows:

	2015			2014
Gross realized gains:
Corporate debt securities	$	5,417		$	4,286
Common stocks and nonredeemable preferred stocks	1,436,386			1,013,931
Total	$	1,441,803		$	1,018,217
Gross realized losses:
General obligations of U.S. states, territories and political subdivisions	$	(12,319	)	$	—
Special revenue issuer obligations of U.S. states, territories and political subdivisions	(397		)	—
Common stocks and nonredeemable preferred stocks	(39,017		)	(178,047		)
Impairments of bonds, debt and equity securities	(668,904		)	—
Total	$	(720,637	)	$	(178,047	)
Net realized gain from securities	$	721,166		$	840,170
Net realized (losses) gains on other investments:
Impairments of other investments	$	(233,069	)	$	(10,062	)
Gains on other investments	113,239			26,234
Losses on other investments	—			(263,434		)
Total	$	(119,830	)	$	(247,262	)
Net realized gain on investments	$	601,336		$	592,908

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

The following table presents the gross unrealized losses on investment securities and the fair value of the securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2015 and December 31, 2014:

	Less than 12 Months					12 Months or Longer					Total
As of September 30, 2015	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,387,882	$	(35,992	)	$	—	$	—		$	2,387,882	$	(35,992	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	6,995,291		(74,308		)	1,200,232		(9,714		)	8,195,523		(84,022		)
Corporate debt securities	1,472,615		(25,455		)	—		—			1,472,615		(25,455		)
Total fixed income securities	$	10,855,788	$	(135,755	)	$	1,200,232	$	(9,714	)	$	12,056,020	$	(145,469	)
Equity securities	$	4,336,722	$	(630,150	)	$	92,475	$	(94,127	)	$	4,429,197	$	(724,277	)
Total temporarily impaired securities	$	15,192,510	$	(765,905	)	$	1,292,707	$	(103,841	)	$	16,485,217	$	(869,746	)

	Less than 12 Months					12 Months or Longer					Total
As of December 31, 2014	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,113,194	$	(19,542	)	$	—	$	—		$	2,113,194	$	(19,542	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	3,946,977		(13,453		)	1,182,390		(42,049		)	5,129,367		(55,502		)
Corporate debt securities	6,924,430		(71,339		)	—		—			6,924,430		(71,339		)
Total fixed income securities	$	12,984,601	$	(104,334	)	$	1,182,390	$	(42,049	)	$	14,166,991	$	(146,383	)
Equity securities	$	930,208	$	(71,669	)	$	141,280	$	(27,562	)	$	1,071,488	$	(99,231	)
Total temporarily impaired securities	$	13,914,809	$	(176,003	)	$	1,323,670	$	(69,611	)	$	15,238,479	$	(245,614	)

As of September 30, 2015, the Company held $12,056,020 in fixed maturity securities with unrealized losses of $145,469. As of December 31, 2014, the Company held $14,166,991 in fixed maturity securities with unrealized losses of $146,383. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.

As of September 30, 2015, the Company held $4,429,197 in equity securities with unrealized losses of $724,277. As of December 31, 2014, the Company held $1,071,488 in equity securities with unrealized losses of $99,231. The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired.

Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 35 and 25 securities had unrealized losses at September 30, 2015 and December 31, 2014, respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. The Company recorded other-than-temporary impairment charges for debt and equity investments in the amount of $668,904 for the nine months ended September 30, 2015 and no other-than-temporary impairment charges for debt and equity investments for the nine months ended September 30, 2014. Other-than-temporary impairment charges are included in net realized (loss) gain on investments in the Consolidated Statements of Income.

XML

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, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income attributable to the Company	$ 4,490,962	$ 2,594,490	$ 10,337,583	$ 6,954,526
Weighted average common shares outstanding - Basic	1,967,923	2,028,818	1,995,120	2,033,637
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled)	4,310	3,826	4,923	5,238
Weighted average common shares outstanding - Diluted	1,972,233	2,032,644	2,000,043	2,038,875
Basic Earnings per Common Share	$ 2.28	$ 1.28	$ 5.18	$ 3.42
Diluted Earnings per Common Share	$ 2.28	$ 1.28	$ 5.17	$ 3.41

XML

Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Related Party Transaction [Line Items]
Other investments	$ 10,069,708	$ 8,530,929
Premiums and fees receivable	9,067,775	8,544,183
Title Insurance Agencies
Related Party Transaction [Line Items]
Other investments	6,785,000	6,014,000
Premiums and fees receivable	$ 815,000	$ 666,000

XML

Basis Of Presentation And Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [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 noncontrolling interests in majority-owned insurance agencies, including redeemable noncontrolling interests, are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections 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 of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the quarter ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts – Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable.

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 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 February 2015, the Financial Accounting Standards Board (“FASB”) updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB updated guidance to defer the effective date of the standard by one year. Early adoption is not permitted, although public entities are permitted to elect to adopt the amendments on the original effective date. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

XML

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Schedule Of Assumptions Used To Determine Fair Value

The following table summarizes some key assumptions the service used to determine the fair value of the ARS portfolio as of September 30, 2015 and December 31, 2014:

	2015	2014
Cumulative probability of earning maximum rate until maturity	—%	—%
Cumulative probability of principal returned prior to maturity	95.2%	95.2%
Cumulative probability of default at some future point	4.8%	4.8%

Schedule Of Fair Value Assets Measured On Recurring Basis

The following table presents, by level, the financial assets carried at fair value measured on a recurring basis as of September 30, 2015 and December 31, 2014. The table does not include cash on hand and also does not include assets that are measured at historical cost or any basis other than fair value. Level 3 assets are comprised solely of ARS.

As of September 30, 2015	Level 1		Level 2		Level 3		Total
Short-term investments	$	13,884,266	$	—	$	—	$	13,884,266
Equity securities:
Common stock	35,135,885		—		—		35,135,885
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		78,912,653		—		78,912,653
Corporate debt securities*	—		18,182,389		939,000		19,121,389
Total	$	49,020,151	$	97,095,042	$	939,000	$	147,054,193

As of December 31, 2014	Level 1		Level 2		Level 3		Total
Short-term investments	$	2,576,993	$	—	$	—	$	2,576,993
Equity securities:
Common stock and nonredeemable preferred stock	39,254,981		—		—		39,254,981
Fixed maturities:
Obligations of U.S. states, territories and political subdivisions*	—		85,780,755		—		85,780,755
Corporate debt securities*	—		22,328,435		939,100		23,267,535
Total	$	41,831,974	$	108,109,190	$	939,100	$	150,880,264

*Denotes fair market value obtained from pricing services.

Schedule Of Carrying Value And Fair Value Of Financial Assets Disclosed

The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of September 30, 2015 and December 31, 2014 are presented in the following table:

As of September 30, 2015	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	19,290,813	$	19,290,813	$	19,290,813	$	—	$	—
Cost-basis investments	3,284,868		3,553,562		—		—		3,553,562
Accrued dividends and interest	1,286,710		1,286,710		1,286,710		—		—
Total	$	23,862,391	$	24,131,085	$	20,577,523	$	—	$	3,553,562

As of December 31, 2014	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash	$	15,826,515	$	15,826,515	$	15,826,515	$	—	$	—
Cost-basis investments	2,516,608		2,675,817		—		—		2,675,817
Accrued dividends and interest	1,063,837		1,063,837		1,063,837		—		—
Total	$	19,406,960	$	19,566,169	$	16,890,352	$	—	$	2,675,817

Schedule Of Fair Value Assets Measured At Unobservable Inputs Reconciliation

The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the period ended September 30, 2015 and the year ended December 31, 2014:

Changes in fair value during the period ended:	2015			2014
Beginning balance at January 1	$	939,100		$	935,700
Redemptions and sales	—			—
Realized gain – included in net realized (loss) gain on investments	—			—
Unrealized loss – included in other comprehensive (loss) income	(100		)	3,400
Ending balance, net	$	939,000		$	939,100

Schedule Of Estimated Fair Value Hierarchy Of Investments And Related Impairments Recognized

The following table summarizes the corresponding estimated fair value hierarchy of such investments at September 30, 2015 and December 31, 2014 and the related impairments recognized:

As of September 30, 2015	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	163,350	$	163,350	$	(233,069	)
Total cost-basis investments			$	—	$	—	$	163,350	$	163,350	$	(233,069	)

As of December 31, 2014	Valuation Method	Impaired	Level 1		Level 2		Level 3		Total at Estimated Fair Value		Impairment Losses
Cost-basis investments	Fair Value	Yes	$	—	$	—	$	22,682	$	22,682	$	(10,062	)
Total cost-basis investments			$	—	$	—	$	22,682	$	22,682	$	(10,062	)

XML

Investments In Securities (Schedule Of Unrealized Losses On Investments) (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	$ 15,192,510	$ 13,914,809
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(765,905)	(176,003)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	1,292,707	1,323,670
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(103,841)	(69,611)
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(869,746)	(245,614)
Total temporarily impaired securities, Total Fair Value	16,485,217	15,238,479
General Obligations Of U.S. States, Territories And Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	2,387,882	2,113,194
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(35,992)	(19,542)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(35,992)	(19,542)
Total temporarily impaired securities, Total Fair Value	2,387,882	2,113,194
Special Revenue Obligations Of U.S. States, Territories And Political Subdivisions
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	6,995,291	3,946,977
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(74,308)	(13,453)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	1,200,232	1,182,390
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(9,714)	(42,049)
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(84,022)	(55,502)
Total temporarily impaired securities, Total Fair Value	8,195,523	5,129,367
Corporate Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	1,472,615	6,924,430
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(25,455)	(71,339)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(25,455)	(71,339)
Total temporarily impaired securities, Total Fair Value	1,472,615	6,924,430
Total Fixed Income Securities
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	10,855,788	12,984,601
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(135,755)	(104,334)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	1,200,232	1,182,390
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(9,714)	(42,049)
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(145,469)	(146,383)
Total temporarily impaired securities, Total Fair Value	12,056,020	14,166,991
Equity Securities
Schedule of Available-for-sale Securities [Line Items]
Total temporarily impaired securities, Less than 12 Months, Fair Value	4,336,722	930,208
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses	(630,150)	(71,669)
Total temporarily impaired securities, 12 Months or Longer, Fair Value	92,475	141,280
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(94,127)	(27,562)
Total temporarily impaired securities, 12 Months or Longer, Unrealized Losses	(724,277)	(99,231)
Total temporarily impaired securities, Total Fair Value	$ 4,429,197	$ 1,071,488

XML

Fair Value Measurement Schedule Of Fair Value Assets Measured On Recurring Basis (Details) - USD ($)		Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		$ 13,884,266	$ 2,576,993
Equity securities		35,135,885	39,254,981
Fixed maturities		98,034,042	109,048,290
Total		147,054,193	150,880,264
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		13,884,266	2,576,993
Total		49,020,151	41,831,974
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0	0
Total		97,095,042	108,109,190
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0	0
Total		939,000	939,100
Common Stock And Nonredeemable Preferred Stock
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		35,135,885	39,254,981
Common Stock And Nonredeemable Preferred Stock | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		35,135,885	39,254,981
Common Stock And Nonredeemable Preferred Stock | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		0	0
Common Stock And Nonredeemable Preferred Stock | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities		0	0
General Obligations Of U.S. States, Territories And Political Subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	78,912,653	85,780,755
General Obligations Of U.S. States, Territories And Political Subdivisions | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	0	0
General Obligations Of U.S. States, Territories And Political Subdivisions | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	78,912,653	85,780,755
General Obligations Of U.S. States, Territories And Political Subdivisions | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	0	0
Corporate Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	19,121,389	23,267,535
Corporate Debt Securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	0	0
Corporate Debt Securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	18,182,389	22,328,435
Corporate Debt Securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fixed maturities	[1]	$ 939,000	$ 939,100

[1] Denotes fair market value obtained from pricing services.

XML

Consolidated Statements Of Comprehensive Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 4,495,498	$ 2,594,490	$ 10,342,119	$ 6,978,049
Other comprehensive income, before tax:
Amortization related to prior year service cost	1,098	554	3,293	1,663
Amortization of unrecognized loss	878	0	2,635	0
Unrealized (losses) gains on investments arising during the period	(2,359,495)	(960,948)	(4,223,992)	2,023,167
Reclassification adjustment for sales of securities included in net income	(458,058)	(6,534)	(1,390,070)	(840,170)
Reclassification adjustment for write-downs of securities included in net income	657,755	0	668,904	0
Other comprehensive (loss) income, before tax	(2,157,822)	(966,928)	(4,939,230)	1,184,660
Income tax expense related to postretirement health benefits	672	188	2,016	565
Income tax (benefit) expense related to unrealized (losses) gains on investments arising during the year	(809,994)	(332,034)	(1,446,083)	699,001
Income tax benefit related to reclassification adjustment for sales of securities included in net income	(156,447)	(2,328)	(474,198)	(288,078)
Income tax expense related to reclassification adjustment for write-downs of securities included in net income	225,293	0	229,093	0
Net income tax (benefit) expense on other comprehensive (loss) income	(740,476)	(334,174)	(1,689,172)	411,488
Other comprehensive (loss) income	(1,417,346)	(632,754)	(3,250,058)	773,172
Comprehensive Income	3,078,152	1,961,736	7,092,061	7,751,221
Comprehensive income attributable to noncontrolling interests	(4,536)		(4,536)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest		0		23,523
Comprehensive Income Attributable to the Company	$ 3,073,616	$ 1,961,736	$ 7,087,525	$ 7,727,698

XML

Basis Of Presentation And Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis Of Presentation And Significant Accounting Policies

Basis of Presentation and Significant Accounting Policies

Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2014 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies.

Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with 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 noncontrolling interests in majority-owned insurance agencies, including redeemable noncontrolling interests, are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections 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 of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the quarter ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

Allowance for Doubtful Accounts – Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable.

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 concluded that there were no material subsequent events requiring adjustment to or disclosure in its Consolidated Financial Statements.

Recently Issued Accounting Standards – In February 2015, the Financial Accounting Standards Board (“FASB”) updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB updated guidance to defer the effective date of the standard by one year. Early adoption is not permitted, although public entities are permitted to elect to adopt the amendments on the original effective date. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact.

XML

Investments In Securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Schedule Of Gross Unrealized Gains And Losses And Amortized Cost For Securities

The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses and cost or amortized cost for securities by major security type are as follows:

As of September 30, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	27,857,108	$	1,064,674	$	35,992	$	28,885,790
Special revenue issuer obligations of U.S. states, territories and political subdivisions	47,745,393		2,365,492		84,022		50,026,863
Corporate debt securities	17,587,935		619,909		25,455		18,182,389
Auction rate securities	923,967		15,033		—		939,000
Total	$	94,114,403	$	4,065,108	$	145,469	$	98,034,042
Equity securities, available-for-sale, at fair value:
Common stocks	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Total	$	24,247,215	$	11,612,947	$	724,277	$	35,135,885
Short-term investments:
Money market funds and certificates of deposit	$	13,884,266	$	—	$	—	$	13,884,266
Total	$	13,884,266	$	—	$	—	$	13,884,266

As of December 31, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed maturities, available-for-sale, at fair value:
General obligations of U.S. states, territories and political subdivisions	$	35,215,247	$	1,527,794	$	19,542	$	36,723,499
Special revenue issuer obligations of U.S. states, territories and political subdivisions	46,707,033		2,405,725		55,502		49,057,256
Corporate debt securities	21,576,641		823,133		71,339		22,328,435
Auction rate securities	922,129		16,971		—		939,100
Total	$	104,421,050	$	4,773,623	$	146,383	$	109,048,290
Equity securities, available-for-sale, at fair value:
Common stocks and nonredeemable preferred stocks	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Total	$	24,128,753	$	15,225,459	$	99,231	$	39,254,981
Short-term investments:
Money market funds and certificates of deposit	$	2,576,993	$	—	$	—	$	2,576,993
Total	$	2,576,993	$	—	$	—	$	2,576,993

Schedule Of Fixed Maturity Securities

The scheduled maturities of fixed maturity securities at September 30, 2015 were as follows:

	Available-for-Sale
	Amortized Cost		Fair Value
Due in one year or less	$	8,587,887	$	8,741,312
Due after one year through five years	47,565,502		49,628,257
Due five years through ten years	35,968,475		37,206,814
Due after ten years	1,992,539		2,457,659
Total	$	94,114,403	$	98,034,042

Schedule Of Gross Realized Gains And Losses On Securities

Realized gains and losses on investments for the nine months endedSeptember 30 are summarized as follows:

	2015			2014
Gross realized gains:
Corporate debt securities	$	5,417		$	4,286
Common stocks and nonredeemable preferred stocks	1,436,386			1,013,931
Total	$	1,441,803		$	1,018,217
Gross realized losses:
General obligations of U.S. states, territories and political subdivisions	$	(12,319	)	$	—
Special revenue issuer obligations of U.S. states, territories and political subdivisions	(397		)	—
Common stocks and nonredeemable preferred stocks	(39,017		)	(178,047		)
Impairments of bonds, debt and equity securities	(668,904		)	—
Total	$	(720,637	)	$	(178,047	)
Net realized gain from securities	$	721,166		$	840,170
Net realized (losses) gains on other investments:
Impairments of other investments	$	(233,069	)	$	(10,062	)
Gains on other investments	113,239			26,234
Losses on other investments	—			(263,434		)
Total	$	(119,830	)	$	(247,262	)
Net realized gain on investments	$	601,336		$	592,908

Schedule Of Unrealized Losses On Investments

The following table presents the gross unrealized losses on investment securities and the fair value of the securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at September 30, 2015 and December 31, 2014:

	Less than 12 Months					12 Months or Longer					Total
As of September 30, 2015	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,387,882	$	(35,992	)	$	—	$	—		$	2,387,882	$	(35,992	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	6,995,291		(74,308		)	1,200,232		(9,714		)	8,195,523		(84,022		)
Corporate debt securities	1,472,615		(25,455		)	—		—			1,472,615		(25,455		)
Total fixed income securities	$	10,855,788	$	(135,755	)	$	1,200,232	$	(9,714	)	$	12,056,020	$	(145,469	)
Equity securities	$	4,336,722	$	(630,150	)	$	92,475	$	(94,127	)	$	4,429,197	$	(724,277	)
Total temporarily impaired securities	$	15,192,510	$	(765,905	)	$	1,292,707	$	(103,841	)	$	16,485,217	$	(869,746	)

	Less than 12 Months					12 Months or Longer					Total
As of December 31, 2014	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
General obligations of U.S. states, territories and political subdivisions	$	2,113,194	$	(19,542	)	$	—	$	—		$	2,113,194	$	(19,542	)
Special revenue issuer obligations of U.S. states, territories and political subdivisions	3,946,977		(13,453		)	1,182,390		(42,049		)	5,129,367		(55,502		)
Corporate debt securities	6,924,430		(71,339		)	—		—			6,924,430		(71,339		)
Total fixed income securities	$	12,984,601	$	(104,334	)	$	1,182,390	$	(42,049	)	$	14,166,991	$	(146,383	)
Equity securities	$	930,208	$	(71,669	)	$	141,280	$	(27,562	)	$	1,071,488	$	(99,231	)
Total temporarily impaired securities	$	13,914,809	$	(176,003	)	$	1,323,670	$	(69,611	)	$	15,238,479	$	(245,614	)

XML

Retirement Agreements And Other Postretirement Benefits (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
Service cost - benefits earned during the year	$ 4,187	$ 3,666	$ 12,561	$ 11,000
Interest cost on the projected benefit obligation	7,693	7,618	23,079	22,854
(Accretion) amortization of unrecognized prior service cost	1,098	554	3,293	1,663
Amortization of unrecognized losses	878	0	2,635	0
Net periodic benefits costs	13,856	$ 11,838	41,568	$ 35,517
Employee benefits and other payments	$ 7,731,000		$ 7,731,000		$ 7,111,000

XML

Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	11,099,177		$	(75,380	)	$	11,023,797
Other comprehensive loss before reclassifications	(1,549,501		)	—			(1,549,501		)
Amounts reclassified from accumulated other comprehensive income	130,851			1,304			132,155
Net current-period other comprehensive (loss) income	(1,418,650		)	1,304			(1,417,346		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Three Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at July 1	$	12,800,951		$	(47,621	)	$	12,753,330
Other comprehensive loss before reclassifications	(628,914		)	—			(628,914		)
Amounts reclassified from accumulated other comprehensive (loss) income	(4,206		)	366			(3,840		)
Net current-period other comprehensive (loss) income	(633,120		)	366			(632,754		)
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

Nine Months Ended September 30, 2015	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	12,934,497		$	(77,988	)	$	12,856,509
Other comprehensive loss before reclassifications	(2,777,909		)	—			(2,777,909		)
Amounts reclassified from accumulated other comprehensive (loss) income	(476,061		)	3,912			(472,149		)
Net current-period other comprehensive (loss) income	(3,253,970		)	3,912			(3,250,058		)
Ending balance	$	9,680,527		$	(74,076	)	$	9,606,451

Nine Months Ended September 30, 2014	Unrealized Gains and Losses On Available-for-Sale Securities			Postretirement Benefits Plans			Total
Beginning balance at January 1	$	11,395,757		$	(48,353	)	$	11,347,404
Other comprehensive income before reclassifications	1,324,166			—			1,324,166
Amounts reclassified from accumulated other comprehensive (loss) income	(552,092		)	1,098			(550,994		)
Net current-period other comprehensive income	772,074			1,098			773,172
Ending balance	$	12,167,831		$	(47,255	)	$	12,120,576

The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended September 30, 2015 and 2014:

Three Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	458,058
Other-than-temporary impairments	(657,755		)
Total	$	(199,697	)	Net realized (loss) gain on investment
Tax	68,846			Provision for Income Taxes
Net of Tax	$	(130,851	)
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,098	)
Unrecognized loss	(878		)
Total	$	(1,976	)	(a)
Tax	672			Provision for Income Taxes
Net of Tax	$	(1,304	)
Reclassifications for the period	$	(132,155	)

Three Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	6,534
Other-than-temporary impairments	—
Total	$	6,534		Net realized (loss) gain on investment
Tax	(2,328		)	Provision for Income Taxes
Net of Tax	$	4,206
Amortization related to postretirement benefit plans:
Prior year service cost	$	(554	)
Unrecognized gain (loss)	—
Total	$	(554	)	(a)
Tax	188			Provision for Income Taxes
Net of Tax	$	(366	)
Reclassifications for the period	$	3,840

Nine Months Ended September 30, 2015
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	1,390,070
Other-than-temporary impairments	(668,904		)
Total	$	721,166		Net realized (loss) gain on investment
Tax	(245,105		)	Provision for Income Taxes
Net of Tax	$	476,061
Amortization related to postretirement benefit plans:
Prior year service cost	$	(3,293	)
Unrecognized loss	(2,635		)
Total	$	(5,928	)	(a)
Tax	2,016			Provision for Income Taxes
Net of Tax	$	(3,912	)
Reclassifications for the period	$	472,149

Nine Months Ended September 30, 2014
Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Consolidated Statements of Income
Unrealized gains and losses on available-for-sale securities:
Net realized gain on investment	$	840,170
Other-than-temporary impairments	—
Total	$	840,170		Net realized (loss) gain on investment
Tax	(288,078		)	Provision for Income Taxes
Net of Tax	$	552,092
Amortization related to postretirement benefit plans:
Prior year service cost	$	(1,663	)
Unrecognized gain (loss)	—
Total	$	(1,663	)	(a)
Tax	565			Provision for Income Taxes
Net of Tax	$	(1,098	)
Reclassifications for the period	$	550,994

(a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization and accretion related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 5.