Note 7 - Segment Information

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Segment Reporting [Text Block]

7. Segment Information

The Company has two reportable segments: (i) Title Insurance and (ii) Corporate and Other. This presentation of reportable segments is aligned with the manner in which the Company's chief operating decision maker, Steven A. Hale II, Chief Executive Officer, monitors the performance of the Company's operations. The measure of the Company's segment performance is income (loss) before income taxes. 

Title Insurance 

Our title insurance segment issues title insurance policies and provides title agency services on residential and commercial real estate transactions. This segment also provides closing and/or escrow services to facilitate real estate transactions.

Corporate and Other 

Activity in the Corporate and Other segment primarily consists of management advisory services that the Company performs through its Services Agreement with HP Risk. Pursuant to this agreement, the Company provides certain managerial and operational services that include, but are not limited to: reinsurance brokerage services; the review and improvement of financial goals; compliance with legal and regulatory mandates; maintenance of an ethical business environment; investment and asset manager compliance; cash and equity management; corporate tax management; personnel management; related party transaction oversight; tax preparation administration; strategic capital modeling; the review of potential acquisitions and transactions involving affiliates and third parties, including but not limited to, renewal rights deals, loss portfolio transfers or entity acquisitions; execution of (or provision for the execution of) all general corporate legal matters; and provision of internal control management services.

The Corporate and Other segment also includes results of the Company's investment in a related party - HC Realty. HC Realty is an internally-managed REIT focused on acquiring, financing, owning and managing build-to-suit or renovate-to-suit, single-tenant properties leased primarily to the U.S. government and administered by the U.S. General Services Administration or directly by the federal government agencies or sub-agencies occupying such properties. As of  March 31, 2026, the Company owns approximately 28.0% of the voting interest of HC Realty.

Provided below is selected financial information about the Company’s operations by segment for the three months ended March 31, 2026 (in thousands):

	Title			Corporate
	Insurance			and Other			Total
Revenues:
Net premium written	$	1,578		$	-		$	1,578
Escrow and other title fees		738			-			738
Management fees from related parties		-			1,500			1,500
Total revenues	$	2,316		$	1,500		$	3,816
Cost of revenues:
Underwriting expenses		(57	)		-			(57	)
Provision for title claim losses		(55	)		-			(55	)
Search and other fees		(28	)		-			(28	)
Total cost of revenue		(140	)		-			(140	)
Gross profit	$	2,176		$	1,500		$	3,676
Operating expenses:
Personnel costs		(1,564	)		(491	)		(2,055	)
Other operating expense (1)		(890	)		(291	)		(1,181	)
Amortization and depreciation		(24	)		-			(24	)
Total operating expense		(2,478	)		(782	)		(3,260	)
Other income, net		82			301			383
(Loss) income before income taxes	$	(220	)	$	1,019		$	799
Goodwill and intangible assets, net (2)	$	6,591		$	-		$	6,591

(1)	Other operating expense primarily consists of rent and other occupancy expenses, software and equipment expense, corporate insurance and other regulatory and professional fees.
(2)	The Company does not allocate its assets by segment, with the exception of Goodwill and Intangible assets.

Provided below is selected financial information about the Company’s operations by segment for the three months ended  March 31, 2025 (in thousands):

	Title			Corporate
	Insurance			and Other			Total
Revenues:
Net premium written	$	1,388		$	-		$	1,388
Escrow and other title fees		584			-			584
Management fees from related parties		-			750			750
Insurance and other services revenue	$	1,972		$	750		$	2,722
Cost of revenues:
Underwriting expenses		(56	)		-			(56	)
Provision for title claim losses		(17	)		-			(17	)
Search and other fees		(27	)		-			(27	)
Total cost of revenue		(100	)		-			(100	)
Gross profit	$	1,872		$	750		$	2,622
Operating expenses:
Personnel costs		(1,635	)		(358	)		(1,993	)
Other operating expense (1)		(818	)		(335	)		(1,153	)
Amortization and depreciation		(25	)		-			(25	)
Total operating expense		(2,478	)		(693	)		(3,171	)
Other income, net		62			206			268
(Loss) income before income taxes	$	(544	)	$	263		$	(281	)
Goodwill and intangible assets, net (2)	$	6,666		$	-		$	6,666

(1)	Other operating expense primarily consists of rent and other occupancy expenses, software and equipment expense, corporate insurance and other regulatory and professional fees.
(2)	The Company does not allocate its assets by segment, with the exception of Goodwill and Intangible assets.