|UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
FORM 10-K
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|                                                                               

| |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934 
    for the fiscal year ended December 31, 2004 | 
| |  | ----------------------------------------------------------------------------------------------------------------------------------------- | 
| |  |                                                                                                                                           | 
| |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934                                              | 
| |  |                                                                                                                                           | 

|Commission file number  0-11774                       
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|                                                      
|INVESTORS TITLE COMPANY                               
|(Exact name of registrant as specified in its charter)
|                                                      

|North Carolina                                                      | 56-1110199                                    
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|(State or other jurisdiction of 
    incorporation or organization) | (I.R.S. Employer
          Identification No.)
|                                                                    |                                               

|121 North Columbia StreetChapel Hill, North Carolina  27514(919) 968-2200
Securities registered pursuant to section 12(b) of the Act:None
Securities registered pursuant to section 12(g) of the Act:
Common Stock, no par value
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    No
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405
of this chapter) is not contained herein, and will not be contained, to the best of registrants
knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K.
Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
 Yes    No
The aggregate market value of the common shares held by non-affiliates was $59,365,278 based on the
closing sales price on the NASDAQ National Market System on the last business day of the registrants
most recently completed second fiscal quarter (June 30, 2004).
As of February 28, 2005, there were 2,855,744 common shares of the registrant outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of Investors Title Companys Annual Report to Shareholders for the fiscal year ended
December 31, 2004 are incorporated by reference in Parts I, II and IV hereof and portions of Investors
Title Companys definitive proxy statement for the Annual Meeting of Shareholders to be held
on May 18, 2005 are incorporated by reference in Part III hereof.
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|SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K, 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 the Private Securities Litigation Reform Act of 1995 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, will, should,
could 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. 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: (1) the demand for title insurance will vary due to factors such
as interest rate fluctuations, the availability of mortgage funds, the level of real estate transactions,
including mortgage refinance activity, the cost of real estate, consumer confidence, employment levels,
family income levels and general economic conditions; (2) losses from claims may be greater than
anticipated such that reserves for possible claims are inadequate; (3) unanticipated adverse changes
in securities markets, including interest rates, could result in material losses on the Companys
investments; (4) the Companys dependence on key management personnel, the loss of whom could
have a material adverse affect on the Companys business; (5) the Companys ability to
develop and offer products and services that meet changing industry standards in a timely and cost-effective
manner and significant changes or additions to applicable government regulations; and (6) state statutes require the Companys insurance subsidiaries
to maintain minimum levels of capital, surplus and reserves and restrict the amount of dividends
that the insurance subsidiaries may pay to the Company without prior regulatory approval.
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.
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|INVESTORS TITLE COMPANY AND SUBSIDIARIES
TABLE OF CONTENTS
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|                                                          

|PART I     |                                                                                                                 |    |    | 
|---------- | --------------------------------------------------------------------------------------------------------------- | -- | -- | 
|ITEM 1.    | BUSINESS                                                                                                        |    | 4  | 
|ITEM 2.    | PROPERTIES                                                                                                      |    | 12 | 
|ITEM 3.    | LEGAL PROCEEDINGS                                                                                               |    | 12 | 
|ITEM 4.    | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                             |    | 12 | 
|ITEM 4A.   | EXECUTIVE OFFICERS OF THE COMPANY                                                                               |    | 12 | 
|PART II    |                                                                                                                 |    |    | 
|ITEM 5.    | MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |    | 14 | 
|ITEM 6.    | SELECTED FINANCIAL DATA                                                                                         |    | 15 | 
|ITEM 7.    | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                           |    | 15 | 
|ITEM 7A.   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                      |    | 15 | 
|ITEM 8.    | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                     |    | 15 | 
|ITEM 9.    | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE                            |    | 16 | 
|ITEM 9A.   | CONTROLS AND PROCEDURES                                                                                         |    | 16 | 
|ITEM 9B.   | OTHER INFORMATION                                                                                               |    | 16 | 
|PART III   |                                                                                                                 |    |    | 
|ITEM 10.   | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT                                                              |    | 17 | 
|ITEM 11.   | EXECUTIVE COMPENSATION                                                                                          |    | 17 | 
|ITEM 12.   | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS                  |    | 17 | 
|ITEM 13.   | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS                                                                  |    | 17 | 
|ITEM 14.   | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                          |    | 17 | 
|PART IV    |                                                                                                                 |    |    | 
|ITEM 15.   | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                      |    | 18 | 
|SIGNATURES |                                                                                                                 | 19 |   
|           |                                                                                                                 |   

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|PART I
ITEM 1.   BUSINESS
GENERAL
Investors
Title Company (the Company) is a holding company that operates through its subsidiaries
and was incorporated in the State of North Carolina in February 1973. The Company became operational
on June 24, 1976, when it acquired Investors Title Insurance Company (ITIC) as a wholly
owned subsidiary under a plan of exchange of shares of common stock. On September 30, 1983, the Company
acquired Northeast Investors Title Insurance Company (NE-ITIC), formerly Investors Title
Insurance Company of South Carolina, as a wholly owned subsidiary under a plan of exchange of shares
of common stock. Investors Capital Management Company (ICMC), a wholly owned subsidiary
of the Company, was organized on October 17, 2003. The Companys most recent subsidiary, Investors
Trust Company (Investors Trust), was granted a trust charter by the North Carolina Banking
Commissioner on February 17, 2004.
The
Company engages primarily in three lines of business. The main business activity is the issuance
of title insurance through ITIC and NE-ITIC. The second line of business provides tax-deferred exchange
services through its subsidiaries, Investors Title Exchange Corporation (ITEC) and
Investors Title Accommodation Corporation (ITAC). The Company has also recently
entered into a third line of business, which it added to supplement its traditional lines of business,
providing investment management and trust services to individuals, trusts and other entities. See
Managements Discussion and Analysis of Financial Condition and Results of Operations and Note
13 of Notes to Consolidated Financial Statements in the 2004 Annual Report to Shareholders incorporated
by reference in this Form 10-K Annual Report for additional information related to the revenues,
income and assets attributable to the Companys operating segments.
The Companys executive offices are located at 121 North Columbia Street, Chapel Hill, North Carolina
27514. The Companys telephone number is (919) 968-2200, its facsimile number is (919) 968-2235,
and its Internet address is www.invtitle.com, the contents of which are not and shall not be deemed
a part of this document or any other U.S. Securities and Exchange filing. The Company makes available
free of charge on its Internet website its annual report on Form 10-K, its quarterly reports on Form
10-Q, its current reports on Form 8-K, and all amendments to those reports filed or furnished pursuant
to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as soon as reasonably practicable
after such materials are electronically filed with or furnished to the Securities and Exchange Commission.
Title Insurance
Through its two wholly owned subsidiaries, ITIC and NE-ITIC, the Company underwrites land title insurance
for owners and mortgagees as a primary insurer and as a reinsurer for other title insurance companies.
Title insurance protects against loss or damage resulting from defects that affect the title to real
property. The commitment and policies issued are the standard American Land Title Association approved
forms.
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|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 property owners to purchase title insurance 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 needs to purchase an owners title insurance
policy to protect his investment.
When real property is conveyed from one party to another, occasionally there is a hidden defect in
the title or a mistake in a prior deed, will or mortgage that may give a third party a legal claim
against such property. If a claim is made against real property, title insurance provides a corporate
guarantee against insured defects, pays all legal expenses to eliminate any title defects, pays any
claims arising from errors in title examination and recording, and pays any losses arising from hidden
defects in title and defects that are not of record. Title insurance provides an assurance that the
insurance holders ownership and use of such property will be defended promptly against claims,
at no cost, whether or not the claim is valid.
A title defect is one of any number of things that could jeopardize the property owners interest.
It could be an unsatisfied mortgage, lien, judgment or other unrecorded claim against the property.
It could arise through easements, use restrictions or other existing covenants, or it could be a
hidden risk. Title insurance generally protects against four kinds of hidden risks  errors
in the public records such as incorrect information in deeds and mortgages regarding names, signatures
and legal descriptions; judgments, liens and mortgages or any other claims against the property or
the seller which become the new owners responsibility after closing, such as unpaid taxes,
assessments and other debts to creditors; claims to ownership by the spouse of a former owner or
by the missing heir of a deceased owner who did not receive his share of the estate;
and invalid deeds or other transfers by sellers who did not actually own the property or by previous
owners who were minors or not mentally competent.
The Company assumes and cedes reinsurance with other insurance companies in the normal course of business.
Ceded reinsurance is comprised of excess of loss treaties, which protects against losses over certain
amounts.
ITIC
was incorporated in the State of North Carolina on January 28, 1972, and became licensed to write
title insurance in the State of North Carolina on February 1, 1972. At present, ITIC mainly writes
land title insurance both as a primary insurer and as a reinsurer throughout the eastern and midwestern
United States. ITIC writes title insurance through issuing agents or branch offices in the District
of Columbia and the States of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana,
Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio,
Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin. In addition to the
states in which ITIC currently writes title insurance, it is also licensed to write title insurance
in 17 additional states. Agents issue policies for ITIC and may provide other services such as search
and settlement services.
NE-ITIC
was incorporated in the State of South Carolina on February 23, 1973, and became licensed to write
title insurance in that state on November 1, 1973. It currently writes title insurance as a primary
insurer and as a reinsurer in the State of New York. NE-ITIC is also licensed to write title insurance
in North Carolina and South Carolina.
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|Each
state license authorizing ITIC or NE-ITIC to write title insurance must be renewed annually. These
licenses are necessary for the companies to operate as a title insurer in each state in which they
are held and the loss of a license in any state by either company would prevent the company from
issuing title insurance in that state.
In
the State of North Carolina, ITIC issues title insurance commitments and policies through its home
office and its 27 branch offices that are located throughout North Carolina. The Company also has
a branch office in South Carolina and Michigan. Title policies are primarily issued through issuing
agents in other states.
In
the ordinary course of business, ITIC and NE-ITIC reinsure certain risks with other title insurers
for the purpose of limiting their exposure. They also assume reinsurance for certain risks of other
title insurers for which they receive additional income. For the last three years, reinsurance activities
accounted for less than 1% of total premium volume.
As
of December 31, 2004, ITIC had a risk retention limit of $2,750,000, meaning that it assumed
primary risks up to $2,750,000. It then reinsured the next $250,000 of risk with NE-ITIC, and all
risks above $3,000,000 were reinsured with an unrelated reinsurer.
As
of December 31, 2004, NE-ITIC had a risk retention limit of $250,000, meaning that it assumed primary
risks up to $250,000. It then reinsured the next $2,750,000 of risk with ITIC, and all amounts above
$3,000,000 were reinsured with an unrelated reinsurer.
Both
ITICs and NE-ITICs risk retention limits are self-imposed and are more conservative than
state insurance regulations require. ITICs self-imposed retention of $2,750,000 is only 15%
of its statutorily permitted retention of $18,371,349. NE-ITICs self-imposed retention of $250,000
is only 12.3% of its statutorily permitted retention of $2,025,024.
ITIC
has been recognized by two independent Fannie Mae-approved actuarial firms, Demotech, Inc. and LACE
Financial Corporation, with rating categories of A Double Prime and A. NE-ITICs
financial stability also has been recognized by Demotech, Inc. and LACE Financial Corporation with
rating categories of A Prime and A+. According to Demotech, title insurance
underwriters earning a financial stability rating of A (A Double Prime) or A (A
Prime) possess unsurpassed financial stability related to maintaining positive surplus as regards
policyholders, regardless of the severity of a general economic downturn or deterioration in
the title insurance cycle. A LACE rating of A+ or A indicates that a title
insurance company has a strong overall financial condition that will allow it to meet its future
claims and that, generally, the company has good operating earnings, is well capitalized and has adequate reserves.
Exchange Services
In
1988, the Company established Investors Title Exchange Corporation, a wholly owned subsidiary (ITEC),
to provide services in connection with tax-deferred exchanges of like-kind property. ITEC acts as
an intermediary in tax-deferred exchanges of property held for productive use in a trade or business
or for investments, and its income is derived from fees for handling exchange transactions.
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|The
Company established South Carolina Document Preparation Company (SCDPC) as a wholly owned
subsidiary in 1994. In the first quarter of 2001, SCDPC changed its name to Investors Title
Accommodation Corporation (ITAC) and began serving as an exchange accommodation titleholder,
offering a vehicle for accomplishing a reverse exchange when a taxpayer must acquire replacement
property before selling the relinquished property.
Investment Management and Trust Services
The
Company organized ICMC, a wholly owned subsidiary, as a North Carolina corporation on October 17,
2003. ICMC is currently licensed as an investment adviser in North Carolina and South Carolina. Investors
Trust, also a wholly owned subsidiary of the Company, received its North Carolina trust charter on
February 17, 2004. The Company anticipates that ICMC and Investors Trust will work together to provide
investment management and trust services to individuals, companies, banks and trusts. These subsidiaries
did not have significant activities in 2004, and are not currently a reportable segment for which
financial information is presented in the financial statements and there is no assurance that this
business will be successful.
OPERATIONS OF SUBSIDIARIES
For
a description of net premiums written geographically, refer to Managements Discussion and Analysis
of Financial Condition and Results of Operations. See Note 13 of Notes to Consolidated Financial
Statements in the 2004 Annual Report to Shareholders incorporated by reference in this Form 10-K
Annual Report for additional information related to the Companys operating segments.
Title Insurance
ITIC
and NE-ITIC issues title insurance coverage through its direct operations or through partially owned
or independent title insurance agents. ITIC and NE-ITIC offer primary title insurance coverage to
owners and mortgagees of real estate and reinsurance of title insurance risks to other title insurance
companies. Title insurance premiums written reflect a one-time premium payment, with no recurring
premiums. Premiums are recorded and policies or commitments are issued upon receipt of final certificates
or preliminary reports with respect to titles. Title insurance commissions earned by the Companys
agents are recognized as expense concurrently with premium recognition.
Exchange Services
ITEC
and ITAC provide customer services in connection with tax-deferred real property exchanges
pursuant to Section 1031 of the Internal Revenue Code. As a qualified intermediary, ITEC holds
the proceeds from sales of relinquished properties until the acquisition of identified
replacement properties occurs. ITAC facilitates tax-deferred reverse exchanges pursuant to IRS
Revenue Procedure 2000-37. These exchanges require ITAC, using funds borrowed on a non-recourse basis
from the customer or his lender, to acquire the designated replacement property on behalf of the
customer by taking temporary title to the customers property until after the disposition
of identified relinquished property occurs.
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|SEASONALITY
Title Insurance
Title
insurance premiums are closely related to the level of real estate activity and the average price
of real estate sales. The availability of funds to finance purchases directly affects real estate
sales. Other factors include consumer confidence, economic conditions, supply and demand, mortgage
interest rates and family income levels. Historically, the first quarter has the least real estate
activity because fewer real estate transactions occur, while the remaining quarters are more active.
Refinance activity is generally less seasonal, but it is subject to interest rate volatility. Fluctuations
in mortgage interest rates can cause shifts in real estate activity outside of the normal seasonal pattern.
Exchange Services
Seasonal
factors affecting the level of real estate activity and the volume of title premiums written will
also affect the demand for exchange services.
MARKETING
Title Insurance
ITIC delivers title insurance coverage through a home office, branch offices, and issuing agents.
In North Carolina, ITIC issues policies primarily through a home office and 27 branch offices.
The Company also has a branch office in South Carolina and Michigan. ITIC also
writes title insurance policies through issuing agents in the District of Columbia and the States
of Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Michigan, Minnesota,
Mississippi, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia,
West Virginia and Wisconsin. Issuing agents are typically real estate attorneys
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.
NE-ITIC currently operates through agency offices in the State of New York.
ITIC
and NE-ITIC strive to provide superior service to their customers and consider this an important
factor in attracting and retaining customers. Branch and corporate personnel strive to develop new
business and agency relationships to increase market share and ITICs Commercial Services Division
provides services to commercial clients. The Companys marketing efforts are also enhanced through
advertising in various periodicals.
Exchange Services
Marketing
of exchange services offered by ITEC and ITAC has been increasingly incorporated into the marketing
of the core title products offered by ITIC and NE-ITIC. The Commercial Services Division of ITIC
also markets the services offered by ITEC and ITAC to its clients.
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|CUSTOMERS
The
Company is not dependent upon any single customer or a few customers, and the loss of any single
customer would not have a material adverse effect on the Company.
INSURED RISK ON POLICIES IN FORCE
Generally,
the amount of the insured risk on a title insurance policy is equal to the lesser of the purchase
price of the insured property or the fair market value of the property. In the event that a claim
is made against the property, the insurer is also responsible for paying all legal expenses in connection
with defending the insured party and eliminating any title defects affecting the property. The insurer
may, however, choose to pay the policy limits to the insured, at which time the insurers duty
to defend the claim is satisfied.
At any given time, the insurers actual financial risk is only a portion of the aggregate insured
risk of all policies in force. The reduction in risk results in part from the reissuance of title
insurance policies by other underwriters when the property is conveyed or refinanced. An owners
policy is effective only as long as the insured has an ownership interest in the property or has
liability under warranties of title. Furthermore, the coverage on a lenders title insurance
policy is reduced and eventually terminated as the loan it secures is paid. Due to the variability
of these factors, the aggregate contingent liability of the Company and its subsidiaries cannot be
determined with any precision.
ENVIRONMENTAL MATTERS
The
title insurance policies ITIC and NE-ITIC currently issue exclude liability for environmental risks
and contamination. Although policies issued prior to 1992 may not specifically exclude such environmental
risks, they generally do not provide affirmative coverage for such risks. As a result, the Company
does not anticipate that it or its subsidiaries will incur any significant expenses related to environmental
claims.
In
connection with effecting tax-deferred exchanges of like-kind property, ITEC and ITAC may temporarily
hold title to property pursuant to an accommodation titleholder agreement. In such situations, the
person or entity for which title is being held must execute an indemnification agreement pursuant
to which it agrees to indemnify ITEC or ITAC, as appropriate, for any environmental or other claims
which may arise as a result of the arrangement.
REGULATIONS
Title Insurance
The
Company is an insurance holding company and therefore it is subject to regulation in the states in
which its insurance subsidiaries do business. These regulations, among other things, require insurance
holding companies to register and file certain reports and require prior regulatory approval of the
payment of dividends and other intercompany transfers.
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|Title insurance companies are extensively regulated under applicable state laws. All states have requirements
for admission to do business as an insurance company, including minimum levels of capital and surplus.
State regulatory authorities monitor the stability and service of insurance companies and possess
broad powers with respect to the licensing of title insurers and agents, rates, type and amount of investments,
policy forms, financial reporting, reserve requirements, and dividend restrictions, as well as examinations
and audits of title insurers. The Companys two insurance subsidiaries are subject to examination
at any time by the insurance regulators in the states where they are licensed.
Proposals to change the laws and regulations governing insurance holding companies and the title insurance
industry are often introduced in Congress, in the state legislatures and before the various insurance
regulatory agencies. The Company regularly monitors such proposals and legislation, although the
likelihood and timing of them and the impact they may have on the Company and its subsidiaries cannot
be determined at this time.
ITIC
is domiciled in North Carolina and is subject to North Carolina insurance regulations. The North
Carolina Department of Insurance typically schedules financial examinations every five years. ITIC
was last examined by the North Carolina Department of Insurance for the period January 1, 1995 through
December 31, 1999. No material deficiencies were noted in the report.
NE-ITIC
is domiciled in South Carolina and subject to South Carolina insurance regulations. The South Carolina
Department of Insurance periodically schedules financial examinations. NE-ITIC was examined by the
South Carolina Department of Insurance for the period January 1, 1998 through December 31, 2000.
No material deficiencies were noted in the report.
In
addition to financial examinations, ITIC and NE-ITIC are subject to market conduct examinations by
the North Carolina Department of Insurance and the South Carolina Department of Insurance, respectively.
These audits examine domiciled state activity. ITICs last market conduct examination commenced
on May 3, 2004 for the period January 1, 2001 through December 31, 2003, with no material deficiencies
noted. NE-ITICs last market conduct examination coincided with its financial examination, which
commenced in November 2001 for the period January 1, 1998 through December 31, 2000. No material
deficiencies were noted for NE-ITIC by the market conduct examiners.
Both
ITIC and NE-ITIC meet the statutory premium reserve requirements and the minimum capital and surplus
requirements of the states in which they are licensed.
Exchange Services
Intermediary
services are not federally regulated and neither ITEC nor ITAC operate in any states that regulate
this industry. ITEC and ITAC both provide services to taxpayers pursuant to Internal Revenue Service
(IRS) regulations that provide taxpayers a safe harbor by using a qualified intermediary
to structure tax-deferred exchanges of property and using an exchange accommodation titleholder to
hold property in reverse exchange transactions. Periodically, changes to the tax code provisions
affecting like-kind exchanges are considered, which could possibly eliminate the need for the services
the exchange segment provides.
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|COMPETITION
Title Insurance
ITIC
currently operates primarily in North Carolina, Michigan, Pennsylvania, South Carolina, Tennessee
and Virginia and NE-ITIC currently operates in New York. ITICs and NE-ITICs major competitors,
which together comprise a majority of the title insurance market on a national level, are Chicago
Title Insurance Company, Commonwealth Land Title Insurance Company, Fidelity National Title Insurance
Company, First American Title Insurance Company, Lawyers Title Insurance Corporation, Old Republic
National Title Insurance Company and Stewart Title Guaranty Company. Key factors that affect competition
in the title insurance industry are price, expertise, timeliness and quality of service and the financial
strength and size of the insurer. Title insurance underwriters also compete for agents based upon
the ratio of premium splits between the underwriter and the agent.
In addition, there are numerous industry-related regulations and statutes that set out conditions and
requirements to conduct business. Changes to or the removal of such regulations and statutes could
result in additional competition from alternative title insurance products or new entrants into the
industry that could materially affect the Companys business operations and financial condition.
Exchange Services
Competition
for ITEC and ITAC comes from other title insurance companies as well as some major banks that offer
exchange services. Key elements that affect competition are price, expertise, timeliness and quality
of service and the financial strength and size of the company. Exchange services are not a regulated
industry; therefore, there is no market data available regarding the Companys market position
in this industry.
INVESTMENTS
The
Company and its subsidiaries derive a substantial portion of their income from investments in bonds
(municipal and corporate) and equity securities. The investment policy is designed to maintain a
high quality portfolio and maximize income. Some state laws impose restrictions upon the types and
amounts of investments that can be made by the Companys insurance subsidiaries.
See
Note 3 of Notes to Consolidated Financial Statements in the 2004 Annual Report to Shareholders incorporated
by reference in this Form 10-K Annual Report for the major categories of investments, earnings by
investment categories, scheduled maturities, amortized cost, and market values of investment securities.
EMPLOYEES
The
Company has no paid employees. Officers of the Company are full-time paid employees of ITIC. The
Companys subsidiaries had 214 full-time employees and 13 part-time employees as of December
31, 2004.
None
of the employees of the Company or its subsidiaries are subject to a collective bargaining agreement.
Management considers its relationship with its employees to be favorable.
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|INTELLECTUAL PROPERTY
The
Company has registered two service marks with the United States Patent and Trademark Office (the
USPTO). The first mark was registered with the USPTO on August 29, 2000 and the second
mark was registered on September 12, 2000. In addition, ITIC registered a service mark with the USPTO
on February 3, 1987. In the Companys opinion, the loss of these registrations would not materially
affect its business or the business of its subsidiaries.
ITEM 2.   PROPERTIES
The
Company owns two adjacent office buildings and property located on the corner of North Columbia and
West Rosemary Streets in Chapel Hill, North Carolina, which serves as the Companys corporate
headquarters. The main building contains approximately 23,000 square feet and has on-site parking
facilities. The Companys principal subsidiary, ITIC, leases office space in 33 locations throughout
North Carolina, South Carolina, Michigan, Nebraska and Tennessee. NE-ITIC leases office space in
one location in New York. Each of the office facilities occupied by the Company and its subsidiaries
are in good condition and adequate for present operations. In September 2004, additional space in
Chapel Hill, North Carolina was leased for ITEC, ITAC, ITICs Commercial Services Division and
ITICs Settlement Services Division.
ITEM 3.   LEGAL PROCEEDINGS
The
Company and its subsidiaries are involved in various 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.
ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No
matters were submitted to a vote of security holders during the fourth quarter of the fiscal year
ended December 31, 2004.
ITEM 4A.  EXECUTIVE OFFICERS OF THE COMPANY
Following
is information regarding the executive officers of the Company as of February 28, 2005. Each
officer is appointed at the annual meeting of the Board of Directors to serve until the next annual
meeting of the Board or until his or her respective successor has been elected and qualified.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12
|--



|Name               |  | Age |  | Position with Registrant                                                                
|------------------ |  | --- |  | ----------------------------------------------------------------------------------------
|                   |  |     |  |                                                                                         
|J. Allen Fine      |  | 70  |  | Chief Executive Officer and Chairman of the Board                                       
|                   |  |     |  |                                                                                         
|James A. Fine, Jr. |  | 42  |  | President, Treasurer, Chief Financial Officer, Chief
    Accounting Officer and Director
|                   |  |     |  |                                                                                         
|W. Morris Fine     |  | 38  |  | Executive Vice President, Secretary and Director                                        

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|J. Allen Fine  has been Chief Executive Officer and Chairman of the Board of the Company since its incorporation
in 1973. Mr. Fine also served as President of the Company until May 1997. Mr. Fine is the father
of James A. Fine, Jr., President, Treasurer and Director of the Company, and W. Morris Fine, Executive
Vice President, Secretary and Director of the Company.
James A. Fine, Jr.  was named Vice President of the Company in 1987. In 1997, he was named President and Treasurer
and appointed as a Director of the Company. He is the son of J. Allen Fine, Chief Executive Officer
and Chairman of the Board of the Company, and the brother of W. Morris Fine, Executive Vice President,
Secretary and Director of the Company.
W. Morris Fine  was named Vice President of the Company in 1992. In 1993, he was named Treasurer of the Company
and served in that capacity until 1997. In 1997, he was named Executive Vice President and Secretary
of the Company. In 1999, he was appointed as a Director of the Company. W. Morris Fine is the son
of J. Allen Fine, Chief Executive Officer and Chairman of the Board of the Company, and the brother
of James A. Fine, Jr., President, Treasurer and Director of the Company.

|13
|--



|PART II
ITEM 5.   MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES
OF EQUITY SECURITIES
The
high and low sales prices for the Companys common stock, as reported on the NASDAQ National
Market System, the dividends paid per common share for each quarter in the last two fiscal years
and the approximate number of shareholders of record are set forth under the caption Common
Stock Data in the 2004 Annual Report to Shareholders and are incorporated by reference in this
Form 10-K Annual Report. For a discussion of factors that may limit the Companys ability to
pay dividends on its common stock, refer to the subsection of Managements Discussion and Analysis
of Financial Condition and Results of Operations entitled Liquidity and Capital Resources
in the 2004 Annual Report to Shareholders, incorporated by reference in this Form 10-K Annual Report.
The
following table provides information about the Companys compensation plans under which equity
securities are authorized for issuance as of December 31, 2004. The Company does not have any equity
compensation plans that have not been approved by its shareholders.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|Plan Category                                                | Number of Securities to
      be Issued Upon Exercise
      of Outstanding Options,
    Warrants and Rights |  | Weighted Average
      Price of Outstanding
      Options, Warrants
      and Rights |          | Number of Securities
      Remaining Available
      for Future Issuance
      Under Equity
    Compensation Plans | 
|------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------ | -------- | ------------------------------------------------------------------------------------------------------------------ | 
|
|Equity compensation plans
      approved by shareholders     | 246,781                                                                                                     |  |                                                                                      | $  16.45 |                                                                                                                    | 
|                                                             |                                                                                                             |  |                                                                                      |          |                                                                                                                    | 
|Equity compensation plans not
      approved by shareholders |                                                                                                            |  |                                                                                      |         |                                                                                                                    | 
|                                                            
|Total                                                        | 246,781                                                                                                     |  |                                                                                      | $  16.45 |                                                                                                                    | 

|                                                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The following table provides information about purchases by the Company (and all affiliated purchasers) during the quarter ended December 31, 2004 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 |  |                                              |  |                                    |       |                                                                                       |        |                                                                                     | 505,855
|10/01/04 - 10/31/04 |  | 2,052                                        |  | $                                  | 31.30 |                                                                                       | 2,052  |                                                                                     | 503,803
|11/01/04 - 11/30/04 |  | 236                                          |  | $                                  | 33.87 |                                                                                       | 236    |                                                                                     | 503,567
|12/01/04 - 12/31/04 |  | 8,695                                        |  | $                                  | 34.81 |                                                                                       | 8,695  |                                                                                     | 494,872
|                    |  |                                              |  |                                    |       |                                                                                       |        |                                                                                     |        
|Total:              |  | 10,983                                       |  | $                                  | 34.13 |                                                                                       | 10,983 |                                                                                     | 494,872
|                    |  |                                              |  |                                    |       |                                                                                       |        |                                                                                     |        

|14
|--



| | (1) | For the quarter ended December 31, 2004, ITIC purchased an aggregate of 10,983 shares of the Companys
common stock pursuant to the purchase plan (the Plan) that was publicly announced on
June 5, 2000.                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (2) | On June 5, 2000, the Board of Directors of ITIC approved the purchase by ITIC of up to an aggregate
of 500,000 shares of the Companys common stock pursuant to the Plan. Subsequently, the Board
of Directors of ITIC approved the purchase of an additional 125,000 shares of the Companys
common stock pursuant to the Plan. Unless terminated earlier by resolution of the Board of Directors
of ITIC, the Plan will expire when ITIC has purchased all shares authorized for purchase thereunder.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (3) | ITIC intends to make further purchases under this Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ITEM 6.   SELECTED FINANCIAL DATA
The
selected financial data for the last five fiscal years of the Company and its subsidiaries is set
forth under the caption Financial Highlights in the 2004 Annual Report to Shareholders
and is incorporated by reference in this Form 10-K Annual Report. The information should be read
in conjunction with the Consolidated Financial Statements, Notes to Consolidated Financial Statements
and Managements Discussion and Analysis of Financial Condition and Results of Operations in
the 2004 Annual Report to Shareholders, which are incorporated by reference in this Form 10-K Annual
Report.
ITEM 7.    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Managements
Discussion and Analysis of Financial Condition and Results of Operations in the 2004 Annual Report
to Shareholders is incorporated by reference in this Form 10-K Annual Report.
ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The
subsection entitled Quantitative and Qualitative Disclosures about Market Risk in Managements
Discussion and Analysis of Financial Condition and Results of Operations in the 2004 Annual Report
to Shareholders is incorporated by reference in this Form 10-K Annual Report.
ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The
financial statements and supplementary data in the 2004 Annual Report to Shareholders are incorporated
by reference in this Form 10-K Annual Report.
The
financial statements meeting the requirements of Regulation S-X are attached hereto as Schedules
I, II, III, IV and V.
The
supplementary financial information set forth in the section entitled Selected Quarterly Financial
Data in Managements Discussion and Analysis of Financial Condition and Results of Operations
in the 2004 Annual Report to Shareholders is incorporated by reference in this Form 10-K Annual Report.

|15
|--



|ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
No reportable item.
ITEM 9A.   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 Act) was recorded, processed, summarized and reported within the time
periods specified by the Securities and Exchange Commissions rules and forms. 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 pursuant to Rule 13a-15(e)
under the Act. 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
December 31, 2004. In reaching this conclusion, the Companys Chief Executive Officer and Chief
Financial Officer determined that the Companys disclosure controls and procedures were effective
in ensuring that such information was accumulated and communicated to the Companys management
as appropriate to allow timely decisions regarding required disclosure.
During
the quarter ended December 31, 2004, there was no change in the Companys internal control over
financial reporting identified in connection with the above-referenced evaluation that has materially
affected, or is reasonably likely to materially affect, the Companys internal control over
financial reporting.
ITEM 9B.   OTHER INFORMATION
There was no information required to be disclosed in a report on Form 8-K during the fourth quarter
of the year that has not been reported.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|16
|--



|PART III
ITEM 10.    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Information
pertaining to Directors of the Company under the heading Election of Directors in the
Companys definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May
18, 2005 is incorporated by reference in this Form 10-K Annual Report. Other information with
respect to executive officers is contained in Part I - Item 4(a) under the caption Executive
Officers of the Company.
The
Company has adopted a written Code of Business Conduct and Ethics that applies to all officers, directors
and employees of the Company and its subsidiaries. The Code of Business Conduct and Ethics can be
found on the Companys website at www.invtitle.com. The Company intends to make all required
disclosures concerning any amendments to, or waivers from, the Code of Business Conduct and Ethics
on its website.
ITEM 11.   EXECUTIVE COMPENSATION
Information
set forth under the headings Executive Compensation and Compensation Committee
Interlocks and Insider Participation in the Companys definitive Proxy Statement relating
to the Annual Meeting of Shareholders to be held on May 18, 2005 is incorporated by reference
in this Form 10-K Annual Report.
ITEM 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS
Information
pertaining to securities ownership of certain beneficial owners and management under the heading
Stock Ownership of Executive Officers and Certain Beneficial Owners in the Companys
definitive Proxy Statement relating to the Annual Meeting of Shareholders to be held on May
18, 2005 is incorporated by reference in this Form 10-K Annual Report.
ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Information set forth under the heading Executive Employment Agreements in the Companys
definitive Proxy Statement relating to the Annual Meeting of Shareholders to be held on May
18, 2005 is incorporated by reference in this Form 10-K Annual Report.
ITEM 14.   PRINCIPAL ACCOUNTANT FEES AND SERVICES
Information
pertaining to principal accountant fees and services under the heading Independent Auditor
Audit and Non-Audit Fees in the Companys definitive Proxy Statement relating to the Annual Meeting of Shareholders
to be held on May 18, 2005 is incorporated by reference in this Form 10-K Annual Report.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17
|--



|PART IV
ITEM 15.   EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|-------------------------------------------------------------
|                                                             

|(a)(1)                                        | Financial Statements.                                                                               
|--------------------------------------------- | ----------------------------------------------------------------------------------------------------
|                                              |                                                                                                     
|                                              | The following financial statements in the 2004 Annual Report to Shareholders are hereby incorporated
|by reference in this Form 10-K Annual Report:
|                                              |                                                                                                     
|                                              | Consolidated Balance Sheets as of December 31, 2004 and 2003                                        
|                                              |                                                                                                     
|                                              | Consolidated Statements of Income for the Years Ended December 31, 2004, 2003 and 2002              
|                                              |                                                                                                     
|                                              | Consolidated Statements of Stockholders Equity for the Years Ended December 31, 2004, 2003 and
2002
|                                              |                                                                                                     
|                                              | Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2004, 2003 and 2002
|                                              |                                                                                                     
|                                              | Consolidated Statements of Cash Flows for the Years Ended December 31, 2004, 2003 and 2002          
|                                              |                                                                                                     
|                                              | Notes to Consolidated Financial Statements                                                          
|                                              |                                                                                                     
|                                              | Report of Independent Auditors                                                                      
|                                              |                                                                                                     
|(a)(2)                                        | Financial Statement Schedules.                                                                      
|                                              |                                                                                                     
|                                              | Following is a list of financial statement schedules filed as part of this Form 10-K Annual Report: 
|                                              |                                                                                                     

| | Schedule Number |  | Description                                                       
| | --------------- |  | ------------------------------------------------------------------
| |                 |  |                                                                   
| | I               |  | Summary of Investments - Other Than Investments in Related Parties
| | II              |  | Condensed Financial Information of Registrant                     
| | III             |  | Supplementary Insurance Information                               
| | IV              |  | Reinsurance                                                       
| | V               |  | Valuation and Qualifying Accounts                                 

|                                                                                                                                                                                                                                                                                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|All other schedules are omitted, as the required information either is not applicable, is not required,
or is presented in the consolidated financial statements or the notes thereto.
(a)(3)     Exhibits.
The
exhibits filed as a part of this report and incorporated herein by reference to other documents are
listed in the Index to Exhibits to this Annual Report on Form 10-K.

|18
|--



|SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities 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
|-----------------------
|(Registrant)           
|                       
|                       
|                       
|                       
|                       

|                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|March 16, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below
by the following persons on behalf of the Registrant and in the capacities indicated on the 16th
day of March, 2005.

|                                             |  |                                 
|-------------------------------------------- |  | --------------------------------
|/s/ J. Allen Fine                            |  |                                 
|                          |  |                 
|J. Allen Fine, Chairman of the Board and     |  | James R. Morton, Director       
|Chief Executive Officer                      |  |                                 
|(Principal Executive Officer)                |  |                                 
|                                             |  |                                 
|                                             |  |                                 
|/s/ James A. Fine, Jr.                       |  | /s/ A. Scott Parker III         
|                          |  |                 
|James A. Fine, Jr., President, Treasurer and |  | A. Scott Parker III, Director   
|Director (Principal Financial Officer and    |  |                                 
|Principal Accounting Officer)                |  |                                 
|                                             |  |                                 
|                                             |  |                                 
|/s/ W. Morris Fine                           |  | /s/ H. Joe King, Jr.            
|                          |  |                 
|W. Morris Fine, Executive Vice President,    |  | H. Joe King, Jr., Director      
|Secretary and Director                       |  |                                 
|                                             |  |                                 
|                                             |  |                                 
|/s/ David L. Francis                         |  | /s/ William J. Kennedy III      
|                          |  |                 
|David L. Francis, Director                   |  | William J. Kennedy III, Director
|                                             |  |                                 
|                                             |  |                                 
|/s/ Loren B. Harrell, Jr.                    |  |                                 
|                          |  |                                 
|Loren B. Harrell, Jr., Director              |  |                                 

|19
|--



|SCHEDULE I                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                   
|INVESTORS TITLE COMPANY AND SUBSIDIARIES
        SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES
        As of December 31, 2004
|                                                                                                                                                   
|
|
|                                                                                                                                                   
|                                                                                                                                                   
|Fixed Maturities:                                                                                                                                  
|Bonds:                                                                                                                                             
|States, municipalities and political
      subdivisions                                                                                            
|Public utilities                                                                                                                                   
|All other corporate bonds                                                                                                                          
|Short term investments                                                                                                                             
|Certificates of deposit                                                                                                                            
|                                                                                                                                                   
|Total fixed maturities                                                                                                                             
|                                                                                                                                                   
|                                                                                                                                                   
|Equity Securities:                                                                                                                                 
|Common Stocks:                                                                                                                                     
|Public utilities                                                                                                                                   
|Banks, trust and insurance companies                                                                                                               
|Industrial, miscellaneous and all other                                                                                                            
|Nonredeemable preferred stocks                                                                                                                     
|                                                                                                                                                   
|Total equity securities                                                                                                                            
|                                                                                                                                                   
|                                                                                                                                                   
|Other Investments                                                                                                                                  
|                                                                                                                                                   
|Total investments per the consolidated balance sheet                                                                                               
|                                                                                                                                                   

|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Fixed maturities are shown at amortized cost and equity securities are shown at original cost.                                                                                                           
|    |                                                                                                                                                                                                          
|(2) | Bonds of states, municipalities and political subdivisions are shown at amortized cost for held-to-maturity bonds and fair value for available-for-sale bonds. Equity securities are shown at fair value.
|    |                                                                                                                                                                                                          

|
|



|SCHEDULE II                                                                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                              
|INVESTORS TITLE COMPANY (PARENT COMPANY)
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT
        BALANCE SHEETS
        AS OF DECEMBER 31, 2004 AND 2003
|                                                                                                                                                              

|                                                                                                                                                                                                                                                                      | 2004 |            | 2003 |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---- | ---------- | ---- | -
|
|Assets                                                                                                                                                                                                                                                                |      |            |      |  
|Cash and cash equivalents                                                                                                                                                                                                                                             | $    | 207,849    |      | $
|Investments in fixed maturities, available-for-sale                                                                                                                                                                                                                   |      | 8,956,400  |      |  
|                                                                                                                                                                                                                                                                      |      |           
|Investments in equity securities                                                                                                                                                                                                                                      |      |           |      |  
|Short term investments                                                                                                                                                                                                                                                |      | 1,012,182  |      |  
|Investments in affiliated companies                                                                                                                                                                                                                                   |      | 58,936,521 |      |  
|Other investments                                                                                                                                                                                                                                                     |      | 819,936    |      |  
|Other receivables                                                                                                                                                                                                                                                     |      | 237,798    |      |  
|Deferred income taxes, net                                                                                                                                                                                                                                            |      | 33,189     |      |  
|Income taxes receivable                                                                                                                                                                                                                                               |      | 2,123,917  |      |  
|Prepaid expenses and other assets                                                                                                                                                                                                                                     |      | 45,713     |      |  
|Property, net                                                                                                                                                                                                                                                         |      | 2,085,822  |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|Total Assets                                                                                                                                                                                                                                                          | $    | 74,459,327 |      | $
|                                                                                                                                                                                                                                                                      |      |            |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|Liabilities and Stockholders Equity
      Liabilities:                                                                                                                                                                                                               |      |            |      |  
|Accounts payable and accrued liabilities                                                                                                                                                                                                                              | $    | 1,952,056  |      | $
|                                                                                                                                                                                                                                                                     
|Stockholders Equity:                                                                                                                                                                                                                                                 |      |            |      |  
|Class A Junior Participating preferred stock - no par value
    (shares authorized 100,000; no shares issued)                                                                                                                                                         |      |           |      |  
|Common stock-no par (shares authorized 10,000,000; 2,481,024
    and 2,503,923 shares issued and outstanding 2004 and 2003,
    respectively, excluding 374,720 and 351,821 shares 2004 and
    2003, respectively, of common stock held by the Companys subsidiary) |      | 1          |      |  
|Retained earnings                                                                                                                                                                                                                                                     |      | 69,272,092 |      |  
|Accumulated other comprehensive income
     (net of deferred taxes: 2004: $1,663,447; 2003: $1,768,477)                                                                                                                                                               |      | 3,235,178  |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|Total stockholders equity                                                                                                                                                                                                                                            |      | 72,507,271 |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|                                                                                                                                                                                                                                                                      |      |            |      |  
|**Total Liabilities and Stockholders Equity**                                                                                                                                                                                                                        | $    | 74,459,327 |      | $
|                                                                                                                                                                                                                                                                      |      |            |      |  

|                                             | 
|-------------------------------------------- | 
|See notes to condensed financial statements.

|
|



|SCHEDULE II                                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                        
|INVESTORS TITLE COMPANY (PARENT COMPANY)
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT
        STATEMENTS OF INCOME
        FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002
|                                                                                                                                                                                        

|                                            | 2004 |            | 2003 |   | 2002       | 
|------------------------------------------- | ---- | ---------- | ---- | - | ---------- | 
|
|Revenues:                                   |      |            |      |   |            | 
|Investment income-interest and dividends    | $    | 124,421    |      | $ | 96,952     | 
|Net realized loss on sales of investments   |      | (12,500    | )    |   |           | 
|Rental income                               |      | 519,991    |      |   | 503,031    | 
|Miscellaneous income                        |      | 69,274     |      |   | 11,000     | 
|                                            |      |            |      |   |            | 
|Total                                       |      | 701,186    |      |   | 610,983    | 
|                                            |      |            |      |   |            | 
|Operating Expenses:                         |      |            |      |   |            | 
|Office occupancy and operations             |      | 285,903    |      |   | 242,861    | 
|Business development                        |      | 42,953     |      |   | 31,098     | 
|Taxes-other than payroll and income         |      | 75,649     |      |   | 65,461     | 
|Professional fees                           |      | 60,161     |      |   | 52,758     | 
|Other expenses                              |      | 59,738     |      |   | 47,635     | 
|                                            |      |            |      |   |            | 
|Total                                       |      | 524,404    |      |   | 439,813    | 
|                                            |      |            |      |   |            | 
|                                            |      |            |      |   |            | 
|Equity in Net Income of Affiliated Cos.*    |      | 10,583,384 |      |   | 10,850,844 | 
|                                            |      |            |      |   |            | 
|Income Before Income Taxes                  |      | 10,760,166 |      |   | 11,022,014 | 
|                                            |      |            |      |   |            | 
|Provision for Income Taxes                  |      | 41,000     |      |   | 57,000     | 
|                                            |      |            |      |   |            | 
|Net Income                                  | $    | 10,719,166 |      | $ | 10,965,014 | 
|                                            |      |            |      |   |            | 
|Basic Earnings per Common Share             | $    | 4.29       |      | $ | 4.38       | 
|                                            |      |            |      |   |            | 
|Weighted Average Shares Outstanding-Basic   |      | 2,496,711  |      |   | 2,503,659  | 
|                                            |      |            |      |   |            | 
|Diluted Earnings Per Common Share           | $    | 4.09       |      | $ | 4.18       | 
|                                            |      |            |      |   |            | 
|Weighted Average Shares Outstanding-Diluted |      | 2,620,916  |      |   | 2,624,473  | 
|                                            |      |            |      |   |            | 

|                                             | 
|-------------------------------------------- | 
|* Eliminated in consolidation               
|                                            
|See notes to condensed financial statements.

|
|



|SCHEDULE II                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                            
|INVESTORS TITLE COMPANY (PARENT COMPANY)
        CONDENSED FINANCIAL INFORMATION OF REGISTRANT
        STATEMENTS OF CASH FLOWS
        FOR THE YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002
|                                                                                                                                                                                            

|                                                                                                              | 2004 |             | 2003 |   | 2002        |  
|------------------------------------------------------------------------------------------------------------- | ---- | ----------- | ---- | - | ----------- | -
|
|Operating
      Activities:                                                                                   |      |             |      |   |             |  
|Net
      income                                                                                              | $    | 10,719,166  |      | $ | 10,965,014  |  
|Adjustments
      to reconcile net income to net cash provided
           by operating activities:            |      |             |      |   |             |  
|Equity
      in net earnings of subsidiaries                                                                  |      | (10,583,384 | )    |   | (10,850,843 | )
|                                                                                                              |      |             |     
|Depreciation                                                                                                  |      | 73,452      |      |   | 70,944      |  
|                                                                                                              |      |             |     
|Amortization,
      net                                                                                       |      | 5,719       |      |   | 10,601      |  
|                                                                                                              |      |             |     
|Net
      gain on disposals of property                                                                       |      |            |      |   |            |  
|                                                                                                              |      |             |     
|                                                                                                              |      |             |     
|Net
      realized loss on sales of investments                                                               |      | 12,500      |      |   |            |  
|Provision
      (benefit) for deferred income taxes                                                           |      | 59,000      |      |   | (12,000     | )
|                                                                                                              |      |             |     
|(Increase)
      decrease in receivables                                                                      |      | 1,519,069   |      |   | (1,446,089  | )
|                                                                                                              |      |             |     
|Increase
      in income taxes receivable-current                                                             |      | (796,461    | )    |   | (1,327,456  | )
|                                                                                                              |      |             |     
|(Increase)
      decrease in prepaid expenses                                                                 |      | (28,786     | )    |   | 2,714       |  
|                                                                                                              |      |             |     
|Increase
      (decrease) in accounts payable and accrued liabilities                                         |      | (5,357      | )    |   | 454,097     |  
|                                                                                                              |      |             |     
|Decrease
      in income taxes payable-current                                                                |      |            |      |   | (232,325    | )
|                                                                                                              |      |             |      |   |             |  
|                                                                                                              |      |             |     
|Net
      cash provided by (used in) operating activities                                                     |      | 974,918     |      |   | (2,365,343  | )
|                                                                                                              |      |             |      |   |             |  
|Investing
      Activities:                                                                                   |      |             |      |   |             |  
|                                                                                                              |      |             |     
|Capital
      contribution to subsidiaries                                                                    |      | (1,783,000  | )    |   | (325,000    | )
|Dividends
      received from subsidiaries                                                                    |      | 5,050,819   |      |   | 3,782,400   |  
|                                                                                                              |      |             |     
|Purchases
      of available-for-sale securities                                                              |      | (19,518,900 | )    |   | (2,000,000  | )
|                                                                                                              |      |             |     
|Purchases
      of short term securities                                                                      |      | (1,012,182  | )    |   |            |  
|                                                                                                              |      |             |     
|Purchases
      of and net earnings from other investments                                                    |      |            |      |   | (486,000    | )
|Proceeds
      from sales and maturities of available-for-sale securities                                     |      | 13,267,500  |      |   | 250,000     |  
|                                                                                                              |      |             |     
|Proceeds
      from sales of short term securities                                                            |      | 2,494,742   |      |   | 1,486,879   |  
|                                                                                                              |      |             |     
|Proceeds
      from sales and distributions from other investments                                            |      | 9,187       |      |   | 42,072      |  
|Purchases
      of property                                                                                   |      | (50,326     | )    |   | (105,048    | )
|                                                                                                              |      |             |     
|Proceeds
      from sales of property                                                                         |      |            |      |   |            |  
|                                                                                                              |      |             |     
|Net
      change in pending trades                                                                            |      | 1,027,929   |      |   |            |  
|                                                                                                              |      |             |      |   |             |  
|Net
      cash provided by (used in) investing activities                                                     |      | (514,231    | )    |   | 2,645,303   |  
|                                                                                                              |      |             |      |   |             |  
|                                                                                                              |      |             |      |   |             |  
|Financing
      Activities:                                                                                   |      |             |      |   |             |  
|                                                                                                              |      |             |     
|Dividends
      paid (net dividends paid to subsidiary of $53,936 in          2004
      and $42,278 in 2003) |      | (374,425    | )    |   | (300,411    | )
|                                                                                                              |      |             |      |   |             |  
|Net
      cash used in financing activities                                                                   |      | (374,425    | )    |   | (300,411    | )
|                                                                                                              |      |             |      |   |             |  
|                                                                                                              |      |             |     
|                                                                                                              |      |             |     
|                                                                                                              |      |             |      |   |             |  
|Net
      Increase (Decrease) in Cash and Cash Equivalents                                                    |      | 86,262      |      |   | (20,451     | )
|                                                                                                              |      |             |     
|Cash and
      Cash Equivalents, Beginning of Year                                                            |      | 121,587     |      |   | 142,038     |  
|                                                                                                              |      |             |      |   |             |  
|Cash
      and Cash Equivalents, End of Year                                                                  | $    | 207,849     |      | $ | 121,587     |  
|                                                                                                              |      |             |      |   |             |  
|                                                                                                              |      |             |      |   |             |  
|Supplemental
      Disclosures:                                                                               |      |             |      |   |             |  
|Cash
      Paid During the Year For:                                                                          |      |             |      |   |             |  
|Income
      Taxes                                                                                            | $    | 781,000     |      | $ | 1,639,000   |  
|                                                                                                              |      |             |      |   |             |  

|                                            
|--------------------------------------------
|See notes to condensed financial statements.

|
|



SCHEDULE II  INVESTORS TITLE COMPANY (PARENT COMPANY)CONDENSED FINANCIAL INFORMATION OF REGISTRANTNOTES TO CONDENSED FINANCIAL STATEMENTS   1.
        The accompanying condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto of Investors Title Company and Subsidiaries.  2.
        Cash dividends paid to Investors Title Company by its wholly owned subsidiary were as follows:   Subsidiaries
        2004
        2003
        2002Investors Title Insurance Company, net  *
        $3,950,819
        $3,307,400
        $2,857,772Investors Title Exchange Corporation
        1,100,000
        175,000
        160,000Investors Title Accommodation Corporation
        -
        100,000
        100,000Investors Title Management Services, Inc.
        -
        200,000
        60,000$    5,050,819
        $    3,782,400
        $    3,177,772  *Total dividends of  $4,004,755 and $3,349,678 paid to the Parent Company in 2004 and 2003, respectively, netted with dividends of $53,936 and $42,278 received from the Parent in 2004 and 2003, respectively.




|SCHEDULE III                                                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                 
|INVESTORS TITLE COMPANY AND SUBSIDIARIES
        SUPPLEMENTARY INSURANCE INFORMATION
        For the Years Ended December 31, 2004, 2003 and 2002
|                                                                                                                                                 

|                 
|-----------------
|
|                 
|                 
|Year Ended       
|December 31, 2004
|Title Insurance  
|                 
|Exchange Services
|                 
|All Other        
|                 
|                 
|                 
|                 
|Year Ended       
|December 31, 2003
|Title Insurance  
|                 
|Exchange Services
|                 
|All Other        
|                 
|                 
|                 
|                 
|Year Ended       
|December 31, 2002
|Title Insurance  
|                 
|Exchange Services
|                 
|All Other        
|                 
|                 
|                 
|                 

|
|



|SCHEDULE IV                                                                                                              
|-------------------------------------------------------------------------------------------------------------------------
|                                                                                                                         
|INVESTORS TITLE COMPANY AND SUBSIDIARIES
        REINSURANCE
        For the Years Ended December 31, 2004, 2003 and 2002
|                                                                                                                         

|                 
|-----------------
|
|                 
|                 
|YEAR ENDED       
|DECEMBER 31, 2004
|Title Insurance  
|                 
|YEAR ENDED       
|DECEMBER 31, 2003
|Title Insurance  
|                 
|YEAR ENDED       
|DECEMBER 31, 2002
|Title Insurance  

|
|



|SCHEDULE V                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                
|INVESTORS TITLE COMPANY AND SUBSIDIARIES
        VALUATION AND QUALIFYING ACCOUNTS 
        For the Years Ended December 31, 2004, 2003 and 2002
|                                                                                                                                                
|                                                                                                                                                

|Description                                   | Balance at
      Beginning
      of Period |            | Additions
      Charged to
      Costs and 
      Expenses |   | Additions
      Charged
      to Other
      Accounts - 
      Describe |  | Deductions-
      describe* |   | Balance at
      End of Period |  
|--------------------------------------------- | ------------------------------------------ | ---------- | ---------------------------------------------------------- | - | ----------------------------------------------------------------------- |  | --------------------------- | - | ------------------------------ | -
|                                             
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|2004                                          |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Premiums Receivable
      Valuation Provision | $                                          | 2,474,000  |                                                            | $ | 5,745,114                                                               |  | $                           |  |                                | $
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Reserves for Claims                           | $                                          | 30,031,000 |                                                            | $ | 7,984,339                                                               |  | $                           |  |                                | $
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|2003                                          |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Premiums Receivable
      Valuation Provision | $                                          | 1,800,000  |                                                            | $ | 5,477,324                                                               |  | $                           |  |                                | $
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Reserves for Claims                           | $                                          | 25,630,000 |                                                            | $ | 9,292,739                                                               |  | $                           |  |                                | $
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|2002                                          |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Premiums Receivable
      Valuation Provision | $                                          | 1,405,000  |                                                            | $ | 4,600,806                                                               |  | $                           |  |                                | $
|                                              |                                            |            |                                                            |   |                                                                         |  |                             |   |                                |  
|Reserves for Claims                           | $                                          | 21,460,000 |                                                            | $ | 6,871,822                                                               |  | $                           |  |                                | $

|                                                         
|---------------------------------------------------------
|*Cancelled premiums and change in allowance for bad debts
|*Payments of claims, net of recoveries                   
|                                                         

|
|



|INDEX TO EXHIBITS
|-----------------
|                 

|ExhibitNumber | Description                                                                                                                                                                                                                    
|------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|              |                                                                                                                                                                                                                                
|3(i)          | Articles of Incorporation dated January 22, 1973, incorporated by reference to Exhibit 1 to Form 10
dated June 12, 1984                                                                                                        
|              |                                                                                                                                                                                                                                
|3(ii)         | Bylaws  Restated and Amended as of May 21, 2003, incorporated by reference to Exhibit 3(ii) to
Form 10-K for the year ended December 31, 2003                                                                                 
|              |                                                                                                                                                                                                                                
|4             | Rights Agreement, dated as of November 12, 2002, between Investors Title Company and Central Carolina
Bank, a division of National Bank of Commerce, incorporated by reference to Exhibit 1 to Form 8-A
filed November 15, 2002
|              |                                                                                                                                                                                                                                
|10(i)         | 1993 Incentive Stock Option Plan, incorporated by reference to Exhibit 10 to Form 10-K for the year ended December 31, 1993                                                                                                    

|         |                                                                                                                                                                                                                                                                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10(ii)   | Form of Incentive Stock Option Agreement under 1993 Incentive Stock Option Plan, incorporated by reference
to Exhibit 10(v) to Form 10-K for the year ended December 31, 1994                                                                                                                                                                      
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(iii)  | 1997 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(viii) to Form
10-K for the year ended December 31, 1996                                                                                                                                                                                                       
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(iv)   | Form of Nonqualified Stock Option Agreement to Non-employee Directors dated May 13, 1997 under the
1997 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(ix) to Form
10-Q for the quarter ended June 30, 1997                                                                                                       
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(v)    | Form of Nonqualified Stock Option Agreement under 1997 Stock Option and Restricted Stock Plan, incorporated
by reference to Exhibit 10(x) to Form 10-K for the year ended December 31, 1997                                                                                                                                                        
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(vi)   | Form of Incentive Stock Option Agreement under 1997 Stock Option and Restricted Stock Plan, incorporated
by reference to Exhibit 10(xi) to Form 10-K for the year ended December 31, 1997                                                                                                                                                          
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(vii)  | Form of Amendment to Incentive Stock Option Agreement between Investors Title Company and James Allen
Fine, James Allen Fine, Jr., William Morris Fine, George Abbitt Snead, Ralph Nichols Strayhorn, III
and Raeford Wilder Wall, Jr., respectively, incorporated by reference to Exhibit 10(xii) to Form
10-Q for the quarter ended June 30, 2000
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(viii) | 2001 Stock Option and Restricted Stock Plan, incorporated by reference to Exhibit 10(xiii) to Form
10-K for the year ended December 31, 2000                                                                                                                                                                                                       
|         |                                                                                                                                                                                                                                                                                                                                                    
|10(ix)   | Form of Employment Agreement dated November 17, 2003 with each of J. Allen Fine, James A. Fine, Jr.
and W. Morris Fine, incorporated by reference to Exhibit 10(ix) to Form 10-K for the year ended December
31, 2003                                                                                                                              
|         |                                                                                                                                                                                                                                                                                                                                                    

|
|



|10(x)    | Amended and Restated Employment Agreement dated June 1, 2004 with J. Allen Fine, incorporated by reference
to Exhibit 10(x) to Form 10-Q for the quarter ended June 30, 2004                                         
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                                                                                                      
|10(xi)   | Form of Amended and Restated Employment Agreement dated June 1, 2004 with each of James A. Fine, Jr.
and W. Morris Fine, incorporated by reference to Exhibit 10(xi) to Form 10-Q for the quarter ended
June 30, 2004
|         |                                                                                                                                                                                                                      
|10(xii)  | Nonqualified Deferred Compensation Plan dated June 1, 2004,
incorporated by reference to Exhibit 10(xii) to Form 10-Q for the quarter ended June 30, 2004                                                            
|         |                                                                                                                                                                                                                      
|10(xiii) | Nonqualified Supplemental Retirement Benefit Plan dated
November 17, 2003, incorporated by reference to Exhibit 10(xiii) to Form 10-Q for the quarter ended
June 30, 2004                                            
|         |                                                                                                                                                                                                                      
|10(xiv)  | Death Benefit Plan Agreement dated April 1, 2004 with J. Allen Fine, incorporated by reference to Exhibit
10(xiv) to Form 10-Q for the quarter ended June 30, 2004                                                   
|         |                                                                                                                                                                                                                      
|10(xv)   | Death Benefit Plan Agreement dated May 19, 2004 with James A. Fine, Jr., incorporated by reference
to Exhibit 10(xv) to Form 10-Q for the quarter ended June 30, 2004                                                
|         |                                                                                                                                                                                                                      
|13       | Portions of 2004 Annual Report to Shareholders incorporated by reference in this report as set
forth in Parts I, II and IV hereof                                                                                    
|         |                                                                                                                                                                                                                      
|14       | Code of Business Conduct and Ethics, incorporated by reference to Exhibit 14 to Form 10-K for the year
ended December 31, 2003                                                                                       

|       |                                                                                                                               
|------ | ------------------------------------------------------------------------------------------------------------------------------
|16     | Letter regarding Change in Certifying Accountant, incorporated by reference to Exhibit 16 to Form 8-K dated September 24, 2004
|       |                                                                                                                               
|21     | Subsidiaries of Registrant, incorporated by reference to Exhibit 21 to Form 10-K for the yearended December 31, 2003          
|       |                                                                                                                               
|23 (a) | Consent of Dixon Hughes PLLC                                                                                                  
|       |                                                                                                                               
|23 (b) | Consent of Deloitte & Touche LLP                                                                                              
|       |                                                                                                                               
|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
|       |                                                                                                                               

|
|