INVESTORS TITLE CO 10-Q

Item 1. Financial Statements Investors Title Company and Subsidiaries Consolidated Balance Sheets As of June 30, 2026 and December 31, 2025 (in thousands) (unaudited) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 20,464 $ 20,838 Investments: Fixed maturity securities, available-for-sale, at fair value (amortized cost: June 30, 2026: $ 130,458 ; December 31, 2025: $ 116,852 ) 130,515 118,116 Equity securities, at fair value (cost: June 30, 2026: $ 34,685 ; December 31, 2025: $ 28,575 ) 51,295 41,481 Short-term investments 51,726 68,763 Other investments 29,825 23,446 Total investments 263,361 251,806 Premiums and fees receivable 19,401 17,126 Accrued interest and dividends 1,634 1,476 Prepaid expenses and other receivables 9,482 9,387 Property, net 30,551 29,397 Goodwill and other intangible assets, net 21,358 20,940 Lease assets 8,355 7,784 Other assets 2,758 2,706 Current income taxes recoverable 2,761 1,678 Total Assets $ 380,125 $ 363,138 Liabilities and Stockholders’ Equity Liabilities: Reserve for claims $ 39,102 $ 38,092 Accounts payable and accrued liabilities 38,303 41,525 Lease liabilities 8,717 8,050 Deferred income taxes, net 7,432 7,171 Total liabilities 93,554 94,838 Commitments and Contingencies — — Stockholders’ Equity: Preferred stock ( 1,000 authorized shares; no shares issued) — — Common stock – no par value ( 10,000 authorized shares; 1,888 and 1,888 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively, excluding in each period 292 shares of common stock held by the Company) — — Retained earnings 286,409 267,209 Accumulated other comprehensive income 162 1,091 Total stockholders' equity 286,571 268,300 Total Liabilities and Stockholders’ Equity $ 380,125 $ 363,138 Refer to notes to the unaudited Consolidated Financial Statements. 1 Investors Title Company and Subsidiaries Consolidated Statements of Operations For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands, except per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues: Net premiums written $ 67,542 $ 54,496 $ 118,488 $ 100,841 Escrow and other title-related fees 5,968 5,694 11,008 9,586 Non-title services 5,105 5,477 9,474 10,086 Interest and dividends 2,272 2,361 4,560 4,700 Other investment income 667 609 1,331 1,019 Net investment gains 4,795 2,104 5,319 925 Other 154 2,908 336 3,057 Total Revenues 86,503 73,649 150,516 130,214 Operating Expenses: Commissions to agents 35,644 29,077 63,096 53,934 Provision for claims 2,783 2,080 3,255 2,403 Personnel expenses 19,043 17,460 38,069 35,794 Office and technology expenses 4,666 4,327 9,176 8,867 Other expenses 4,921 4,907 9,759 9,365 Total Operating Expenses 67,057 57,851 123,355 110,363 Income before Income Taxes 19,446 15,798 27,161 19,851 Provision for Income Taxes 4,813 3,520 6,461 4,402 Net Income $ 14,633 $ 12,278 $ 20,700 $ 15,449 Basic Earnings per Common Share $ 7.75 $ 6.51 $ 10.96 $ 8.19 Weighted Average Shares Outstanding – Basic 1,888 1,887 1,888 1,886 Diluted Earnings per Common Share $ 7.73 $ 6.48 $ 10.93 $ 8.16 Weighted Average Shares Outstanding – Diluted 1,894 1,894 1,894 1,894 Refer to notes to the unaudited Consolidated Financial Statements. 2 Investors Title Company and Subsidiaries Consolidated Statements of Comprehensive Income For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 14,633 $ 12,278 $ 20,700 $ 15,449 Other comprehensive (loss) income, before income tax: Changes in accumulated postretirement benefit obligation adjustment ( 6 ) ( 8 ) 22 63 Net unrealized (losses) gains on investments arising during the period ( 256 ) 311 ( 1,177 ) 536 Reclassification adjustment for sale of securities included in net income 4 ( 2 ) ( 30 ) ( 5 ) Other comprehensive (loss) income, before income tax ( 258 ) 301 ( 1,185 ) 594 Income tax (benefit) expense related to postretirement health benefits ( 1 ) ( 2 ) 5 13 Income tax (benefit) expense related to net unrealized (losses) gains on investments arising during the period ( 56 ) 67 ( 255 ) 115 Income tax benefit related to reclassification adjustment for sale of securities included in net income — ( 1 ) ( 6 ) ( 1 ) Net income tax (benefit) expense on other comprehensive (loss) income ( 57 ) 64 ( 256 ) 127 Other comprehensive (loss) income ( 201 ) 237 ( 929 ) 467 Comprehensive Income $ 14,432 $ 12,515 $ 19,771 $ 15,916 Refer to notes to the unaudited Consolidated Financial Statements. 3 Investors Title Company and Subsidiaries Consolidated Statements of Stockholders’ Equity For the Three and Six Months Ended June 30, 2026 and 2025 (in thousands, except per share amounts) (unaudited) Common Stock Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Shares Amount Balance, March 31, 2025 1,886 $ — $ 253,827 $ 585 $ 254,412 Net income 12,278 12,278 Dividends paid ($ 0.46 per share) ( 868 ) ( 868 ) Exercise of stock appreciation rights 2 — — Share-based compensation expense related to stock appreciation rights 118 118 Changes in accumulated postretirement benefit obligation adjustment ( 6 ) ( 6 ) Net unrealized gain on investments 243 243 Balance, June 30, 2025 1,888 $ — $ 265,355 $ 822 $ 266,177 Balance, March 31, 2026 1,888 $ — $ 272,527 $ 363 $ 272,890 Net income 14,633 14,633 Dividends paid ($ 0.46 per share) ( 870 ) ( 870 ) Share-based compensation expense related to stock appreciation rights 119 119 Changes in accumulated postretirement benefit obligation adjustment ( 5 ) ( 5 ) Net unrealized loss on investments ( 196 ) ( 196 ) Balance, June 30, 2026 1,888 $ — $ 286,409 $ 162 $ 286,571 4 Consolidated Statements of Stockholders’ Equity, continued Common Stock Retained Earnings Accumulated Other Comprehensive Income Total Stockholders’ Equity Shares Amount Balance, December 31, 2024 1,886 $ — $ 251,418 $ 355 $ 251,773 Net income 15,449 15,449 Dividends paid ($ 0.92 per share) ( 1,736 ) ( 1,736 ) Exercise of stock appreciation rights 2 — — Share-based compensation expense related to stock appreciation rights 224 224 Changes in accumulated postretirement benefit obligation adjustment 50 50 Net unrealized gain on investments 417 417 Balance, June 30, 2025 1,888 $ — $ 265,355 $ 822 $ 266,177 Balance, December 31, 2025 1,888 $ — $ 267,209 $ 1,091 $ 268,300 Net income 20,700 20,700 Dividends paid ($ 0.92 per share) ( 1,737 ) ( 1,737 ) Share-based compensation expense related to stock appreciation rights 237 237 Changes in accumulated postretirement benefit obligation adjustment 17 17 Net unrealized loss on investments ( 946 ) ( 946 ) Balance, June 30, 2026 1,888 $ — $ 286,409 $ 162 $ 286,571 Refer to notes to the unaudited Consolidated Financial Statements. 5 Investors Title Company and Subsidiaries Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2026 and 2025 (in thousands) (unaudited) Six Months Ended June 30, 2026 2025 Operating Activities Net income $ 20,700 $ 15,449 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 1,747 1,884 Accretion of investments, net ( 708 ) ( 733 ) Amortization of other intangible assets, net 571 418 Share-based compensation expense related to stock appreciation rights 237 224 Net gains on disposals of property ( 62 ) ( 6 ) Net investment gains ( 5,319 ) ( 925 ) Net gains on sale of other assets — ( 2,768 ) Net earnings from other investments ( 847 ) ( 787 ) Provision for claims 3,255 2,403 Provision (benefit) for deferred income taxes 517 ( 426 ) Changes in assets and liabilities: Increase in premium and fees receivable ( 2,275 ) ( 919 ) (Increase) decrease in other assets ( 1,436 ) 1,981 Increase in lease assets ( 571 ) ( 1,625 ) Increase in current income taxes recoverable ( 1,083 ) ( 1,194 ) Decrease in accounts payable and accrued liabilities ( 3,397 ) ( 4,157 ) Increase in lease liabilities 667 1,654 Decrease in current income taxes payable — ( 276 ) Payments of claims, net of recoveries ( 2,245 ) ( 1,412 ) Net cash provided by operating activities 9,751 8,785 Investing Activities Purchases of fixed maturity securities ( 33,562 ) ( 32,796 ) Purchases of equity securities ( 9,885 ) ( 4,900 ) Purchases of short-term investments ( 25,381 ) ( 28,510 ) Purchases of other investments ( 7,801 ) ( 3,316 ) Purchases of other assets — ( 4,536 ) Proceeds from sales and maturities of fixed maturity securities 20,799 28,356 Proceeds from sales of equity securities 5,715 11,333 Proceeds from sales and maturities of short-term investments 42,509 27,468 Proceeds from sales and distributions of other investments and assets 2,057 7,304 Purchases of property ( 2,918 ) ( 2,886 ) Proceeds from sales of property 79 463 Net cash used in investing activities ( 8,388 ) ( 2,020 ) Financing Activities Dividends paid ( 1,737 ) ( 1,736 ) Net cash used in financing activities ( 1,737 ) ( 1,736 ) Net (Decrease) Increase in Cash and Cash Equivalents ( 374 ) 5,029 Cash and Cash Equivalents, Beginning of Period 20,838 24,654 Cash and Cash Equivalents, End of Period $ 20,464 $ 29,683 6 Consolidated Statements of Cash Flows, continued Six Months Ended June 30, 2026 2025 Supplemental Disclosures: Cash Paid During the Year for: Income tax payments, net $ 7,027 $ 6,299 Non-Cash Investing and Financing Activities: Non-cash net unrealized loss (gain) on investments, net of deferred tax benefit (expense) of $ 261 and $( 114 ) for June 30, 2026 and 2025, respectively $ 946 $ ( 417 ) Adjustments to postretirement benefits obligation, net of deferred tax expense of $( 5 ) and $( 13 ) for June 30, 2026 and 2025, respectively $ ( 17 ) $ ( 50 ) Refer to notes to the unaudited Consolidated Financial Statements. 7 INVESTORS TITLE COMPANY AND SUBSIDIARIES Notes to Unaudited Consolidated Financial Statements June 30, 2026 (unaudited) Note 1 – Basis of Presentation and Significant Accounting Policies Reference should be made to the “Notes to Consolidated Financial Statements” appearing in the Annual Report on Form 10-K for the year ended December 31, 2025 of Investors Title Company (the “Company”) for a complete description of the Company’s significant accounting policies. Principles of Consolidation – The accompanying unaudited Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") for interim financial information, with the instructions to Form 10-Q and with Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual consolidated financial statements have been condensed or omitted. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company in the accompanying unaudited Consolidated Financial Statements have been included. All such adjustments are of a normal recurring nature. Operating results for the three- and six-month periods ended June 30, 2026 are not necessarily indicative of the financial condition and results that may be expected for the year ending December 31, 2026 or any other interim period. Use of Estimates and Assumptions – The preparation of the Company’s unaudited Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the unaudited Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. Subsequent Events – The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. Recently Issued Accounting Standards In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The update requires that an entity disclose additional information about specific expense categories. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is evaluating the effect of this guidance on its financial statement disclosures, however, adoption will not impact its financial position or results of operations. In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . The update modifies the accounting for internal-use software development costs by eliminating the stage-based model and establishing new capitalization criteria that apply once a project is authorized and funded, and it is probable the software will be completed and used as intended. The new guidance also introduces the concept of significant development uncertainty to help entities determine the appropriate timing of capitalization and integrates prior website development guidance into Accounting Standards Codification (“ASC”) 350-40. The update is effective for annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently assessing the impact of adopting this guidance and does not expect the adoption to have a material effect on its financial position or results of operations. 8 Note 2 – Reserve for Claims Activity in the reserve for claims for the six-month period ended June 30, 2026 and the year ended December 31, 2025 is summarized as follows: (in thousands) June 30, 2026 December 31, 2025 Balance, beginning of period $ 38,092 $ 37,060 Provision charged to operations 3,255 4,607 Payments of claims, net of recoveries ( 2,245 ) ( 3,575 ) Balance, end of period $ 39,102 $ 38,092 The total reserve for all reported and unreported losses the Company incurred through June 30, 2026 is represented by the reserve for claims on the unaudited Consolidated Balance Sheets. The Company's reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy claims that have been incurred but not yet reported (“IBNR”). Despite the variability of such estimates, management believes that the total reserve for claims is adequate to cover claim losses which might result from pending and future claims under title insurance policies issued through June 30, 2026. Management continually reviews and adjusts its reserve for claims estimates to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews could be significant. A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows: (in thousands, except percentages) June 30, 2026 % December 31, 2025 % Known title claims $ 2,768 7.1 $ 3,459 9.1 IBNR 36,334 92.9 34,633 90.9 Total reserve for claims $ 39,102 100.0 $ 38,092 100.0 Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the Company carries assets at the lower of cost or estimated fair value, net of any indebtedness on the property. Note 3 – Earnings Per Common Share and Share Awards Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans, and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are assumed to be exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period. The following table sets forth the computation of basic and diluted earnings per share for the three- and six-month periods ended June 30: Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2026 2025 2026 2025 Net income $ 14,633 $ 12,278 $ 20,700 $ 15,449 Weighted average common shares outstanding – Basic 1,888 1,887 1,888 1,886 Incremental shares outstanding assuming the exercise of dilutive SARs (share-settled) 6 7 6 8 Weighted average common shares outstanding – Diluted 1,894 1,894 1,894 1,894 Basic earnings per common share $ 7.75 $ 6.51 $ 10.96 $ 8.19 Diluted earnings per common share $ 7.73 $ 6.48 $ 10.93 $ 8.16 9 There were 0 and 5 thousand potential shares excluded from the computation of diluted earnings per share for the three-month periods ended June 30, 2026 and 2025, respectively, due to the out-of-the-money status of the related share-based awards. There were 5 thousand potential shares excluded from the computation of diluted earnings per share for both the six-month periods ended June 30, 2026 and 2025, due to the out-of-the-money status of the related share-based awards. The Company historically has adopted employee stock award plans under which restricted stock, options or stock appreciation rights ("SARs") exercisable for the Company's stock may be granted to key employees or directors of the Company. There is currently one plan with outstanding awards and from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. As of June 30, 2026, the only outstanding awards under the plans were SARs, which expire within seven years or less from the date of grant. All outstanding SARs vest and are exercisable within five years or less from the date of grant, and all SARs issued to date have been share-settled only. There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant. A summary of share-based award transactions for all share-based award plans follows: (in thousands, except weighted average exercise price and average remaining contractual term) Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2025 28 $ 154.74 3.90 $ 2,312 SARs granted 5 246.75 SARs exercised ( 9 ) 158.04 Outstanding as of December 31, 2025 24 $ 170.67 3.91 $ 2,312 SARs granted 5 238.06 SARs exercised ( 2 ) 162.55 SARs forfeited or expired — — Outstanding as of June 30, 2026 27 $ 182.28 4.19 $ 2,484 Exercisable as of June 30, 2026 22 $ 177.10 3.86 $ 2,105 Unvested as of June 30, 2026 5 $ 203.28 5.52 $ 379 During the second quarters of both 2025 and 2026, the Company issued 5 thousand share-settled SARs to directors of the Company. The fair value of each SAR is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average fair values for the SARs issued during 2026 and 2025 were $ 105.00 and $ 105.31 , respectively, and were estimated using the weighted average assumptions shown in the table below: 2026 2025 Expected Life in Years 7.0 7.0 Volatility 38.3 % 36.6 % Interest Rate 4.4 % 4.4 % Yield Rate 0.8 % 0.8 % There was approximately $ 237 thousand and $ 225 thousand of compensation expense relating to SARs vesting on or before June 30, 2026 and 2025, respectively, included in personnel expenses in the unaudited Consolidated Statements of Operations. As of June 30, 2026, there was $ 467 thousand of unrecognized compensation expense related to unvested share-based compensation arrangements granted under the Company’s stock award plans. 10 Note 4 – Segment Information The Company has two reportable segments, title insurance and exchange services. The remaining immaterial segments have been combined into a group called “All Other.” The Company’s chief operating decision makers (“CODMs”) are the Chief Executive Officer; President, Chief Financial Officer, Chief Accounting Officer, and Treasurer; and Executive Vice President and Secretary. The CODMs use financial metrics such as consolidated operating margin and net income to assess financial performance and to make key operating decisions, such as resource allocation and the rate at which the Company invests in growth opportunities. The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate. The exchange services segment acts as an intermediary in tax-deferred exchanges of property held for productive use in a trade or business or for investments and serves as exchange accommodation titleholder, holding property for exchangers in reverse exchange transactions. Provided below is selected financial information about the Company's operations by segment for the periods ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 (in thousands) Title Insurance Exchange Services All Other Intersegment Eliminations Total Insurance and other services revenues $ 78,803 $ 2,845 $ 2,976 $ ( 5,855 ) $ 78,769 Net investment income 6,816 15 903 — 7,734 Total revenues 85,619 2,860 3,879 ( 5,855 ) 86,503 Commissions to agents 39,630 — — ( 3,986 ) 35,644 Provision for claims 2,783 — — — 2,783 Personnel expenses 16,337 634 2,072 — 19,043 Other 9,876 92 1,333 ( 1,714 ) 9,587 Operating expenses 68,626 726 3,405 ( 5,700 ) 67,057 Income before income taxes $ 16,993 $ 2,134 $ 474 $ ( 155 ) $ 19,446 Total assets $ 267,373 $ 3,346 $ 109,406 $ — $ 380,125 Three Months Ended June 30, 2025 (in thousands) Title Insurance Exchange Services All Other Intersegment Eliminations Total Insurance and other services revenues $ 66,682 $ 3,448 $ 2,727 $ ( 4,282 ) $ 68,575 Net investment income 3,966 85 1,023 — 5,074 Total revenues 70,648 3,533 3,750 ( 4,282 ) 73,649 Commissions to agents 32,061 — — ( 2,984 ) 29,077 Provision for claims 2,080 — — — 2,080 Personnel expenses 15,011 596 1,853 — 17,460 Other 8,731 97 1,550 ( 1,144 ) 9,234 Operating expenses 57,883 693 3,403 ( 4,128 ) 57,851 Income before income taxes $ 12,765 $ 2,840 $ 347 $ ( 154 ) $ 15,798 Total assets $ 236,262 $ 9,081 $ 100,481 $ — $ 345,824 11 Six Months Ended June 30, 2026 (in thousands) Title Insurance Exchange Services All Other Intersegment Eliminations Total Insurance and other services revenues $ 137,793 $ 5,167 $ 5,722 $ ( 9,376 ) $ 139,306 Net investment income 9,343 43 1,824 — 11,210 Total revenues 147,136 5,210 7,546 ( 9,376 ) 150,516 Commissions to agents 69,803 — — ( 6,707 ) 63,096 Provision for claims 3,255 — — — 3,255 Personnel expenses 32,708 1,250 4,111 — 38,069 Other 18,660 211 2,423 ( 2,359 ) 18,935 Operating expenses 124,426 1,461 6,534 ( 9,066 ) 123,355 Income before income taxes $ 22,710 $ 3,749 $ 1,012 $ ( 310 ) $ 27,161 Total assets $ 267,373 $ 3,346 $ 109,406 $ — $ 380,125 Six Months Ended June 30, 2025 (in thousands) Title Insurance Exchange Services All Other Intersegment Eliminations Total Insurance and other services revenues $ 120,464 $ 6,440 $ 4,753 $ ( 8,087 ) $ 123,570 Net investment income 4,806 129 1,709 — 6,644 Total revenues 125,270 6,569 6,462 ( 8,087 ) 130,214 Commissions to agents 59,739 — — ( 5,805 ) 53,934 Provision for claims 2,403 — — — 2,403 Personnel expenses 31,107 1,222 3,465 — 35,794 Other 17,509 196 2,501 ( 1,974 ) 18,232 Operating expenses 110,758 1,418 5,966 ( 7,779 ) 110,363 Income before income taxes $ 14,512 $ 5,151 $ 496 $ ( 308 ) $ 19,851 Total assets $ 236,262 $ 9,081 $ 100,481 $ — $ 345,824 Note 5 – Retirement Agreements and Other Postretirement Benefits The Company’s subsidiary, Investors Title Insurance Company ("ITIC"), is a party to employment agreements with key executives that provide for the continuation of certain employee benefits and other payments due under the agreements upon retirement, estimated to total $ 15.8 million and $ 15.6 million as of June 30, 2026 and December 31, 2025, respectively. The executive employee benefits include health, dental, vision and life insurance and are unfunded. These amounts are classified as accounts payable and accrued liabilities in the unaudited Consolidated Balance Sheets. The following sets forth the net periodic benefit cost for the executive benefits for the periods ended June 30, 2026 and 2025: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Service cost – benefits earned during the year $ — $ — $ — $ — Interest cost on the projected benefit obligation 12 23 22 24 Amortization of unrecognized (gain) loss ( 6 ) ( 8 ) 128 ( 8 ) Net periodic benefit cost $ 6 $ 15 $ 150 $ 16 12 Note 6 – Investments and Estimated Fair Value Investments in Fixed Maturity Securities The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows: As of June 30, 2026 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 1,804 $ — $ ( 19 ) $ 1,785 General obligations of U.S. states, territories and political subdivisions 11,269 72 ( 53 ) 11,288 Special revenue issuer obligations of U.S. states, territories and political subdivisions 7,806 29 ( 15 ) 7,820 Corporate debt securities 109,579 506 ( 463 ) 109,622 Total $ 130,458 $ 607 $ ( 550 ) $ 130,515 As of December 31, 2025 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: General obligations of U.S. states, territories and political subdivisions $ 12,449 $ 74 $ ( 31 ) $ 12,492 Special revenue issuer obligations of U.S. states, territories and political subdivisions 10,760 47 ( 10 ) 10,797 Corporate debt securities 93,643 1,236 ( 52 ) 94,827 Total $ 116,852 $ 1,357 $ ( 93 ) $ 118,116 The special revenue category for both periods presented includes approximately 20 individual fixed maturity securities with revenue sources from a variety of industry sectors. The scheduled maturities of fixed maturity securities at June 30, 2026 are as follows: Available-for-Sale (in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 28,976 $ 29,028 Due one year through five years 75,865 75,778 Due five years through ten years 23,068 22,938 Due after ten years 2,549 2,771 Total $ 130,458 $ 130,515 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. 13 The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at June 30, 2026 and December 31, 2025: Less than 12 Months 12 Months or Longer Total As of June 30, 2026 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,785 $ ( 19 ) $ — $ — $ 1,785 $ ( 19 ) General obligations of U.S. states, territories and political subdivisions 4,814 ( 53 ) — — 4,814 ( 53 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,349 ( 11 ) 101 ( 4 ) 1,450 ( 15 ) Corporate debt securities 54,783 ( 463 ) — — 54,783 ( 463 ) Total $ 62,731 $ ( 546 ) $ 101 $ ( 4 ) $ 62,832 $ ( 550 ) Less than 12 Months 12 Months or Longer Total As of December 31, 2025 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses General obligations of U.S. states, territories and political subdivisions $ 5,924 $ ( 31 ) $ — $ — $ 5,924 $ ( 31 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,192 ( 3 ) 1,260 ( 7 ) 2,452 ( 10 ) Corporate debt securities 13,659 ( 52 ) — — 13,659 ( 52 ) Total $ 20,775 $ ( 86 ) $ 1,260 $ ( 7 ) $ 22,035 $ ( 93 ) Management evaluates available-for-sale fixed maturity securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Factors considered in determining whether a loss is credit-related include the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 78 and 32 fixed maturity securities had unrealized losses at June 30, 2026 and December 31, 2025, respectively. The Company does not intend to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The Company believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in market interest rates and other market conditions, and therefore the unrealized loss is recorded in accumulated other comprehensive income. Reviews of the values of fixed maturity securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods, resulting in a realized loss. The Company recorded no impairment charges related to fixed maturity securities for the three- and six-month periods ended June 30, 2026, respectively, and no impairment charges for the three- and six-month periods ended June 30, 2025. Expenses related to impairments are recorded in net investment gains in the unaudited Consolidated Statements of Operations when recognized. Investments in Equity Securities The cost and estimated fair value of equity securities are as follows: As of June 30, 2026 (in thousands) Cost Estimated Fair Value Equity securities, at fair value: Common stocks $ 34,685 $ 51,295 Total $ 34,685 $ 51,295 14 As of December 31, 2025 (in thousands) Cost Estimated Fair Value Equity securities, at fair value: Common stocks $ 28,575 $ 41,481 Total $ 28,575 $ 41,481 Unrealized holding gains and losses are reported in the unaudited Consolidated Financial Statements of Operations as net investment gains. Net Investment Gains Gross investment gains and losses for the three- and six-month periods ended June 30, 2026 and 2025 are summarized as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Gross realized gains from securities: Corporate debt securities $ 1 $ 2 $ 35 $ 5 Common stocks 2,031 1,599 2,220 4,156 Total $ 2,032 $ 1,601 $ 2,255 $ 4,161 Gross realized losses from securities: Corporate debt securities $ ( 6 ) $ — $ ( 6 ) $ — Common stocks ( 166 ) ( 326 ) ( 272 ) ( 613 ) Total $ ( 172 ) $ ( 326 ) $ ( 278 ) $ ( 613 ) Net realized gains from securities $ 1,860 $ 1,275 $ 1,977 $ 3,548 Gross realized gains (losses) on other investments: Gains on other investments $ — $ — $ — $ 1 Write-down of other assets ( 362 ) ( 144 ) ( 362 ) ( 419 ) Total $ ( 362 ) $ ( 144 ) $ ( 362 ) $ ( 418 ) Net realized investment gains $ 1,498 $ 1,131 $ 1,615 $ 3,130 Changes in the estimated fair value of equity security investments $ 3,297 $ 973 $ 3,704 $ ( 2,205 ) Net investment gains $ 4,795 $ 2,104 $ 5,319 $ 925 Realized gains and losses are determined on the specific identification method. 15 Variable Interest Entities The Company holds investments in variable interest entities ("VIEs") that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause and no participation rights exist. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of June 30, 2026 and December 31, 2025: June 30, 2026 (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Real estate LLCs or LPs Other investments $ 15,669 $ 16,774 $ 21,716 Small business investment LPs Other investments 4,491 4,491 4,132 Total $ 20,160 $ 21,265 $ 25,848 December 31, 2025 (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Real estate LLCs or LPs Other investments $ 13,238 $ 14,877 $ 16,592 Small business investment LPs Other investments 668 668 — Total $ 13,906 $ 15,545 $ 16,592 (a) Maximum potential loss is calculated as the total investment in the LLC or LP, including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. Valuation of Financial Assets The FASB has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions intended to represent market participant assumptions used to measure assets and liabilities at fair value. A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls. The Level 1 category includes equity securities and U.S. Treasury securities that are measured at estimated fair value using quoted active market prices. The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with GAAP. Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of June 30, 2026 and December 31, 2025, the Company did not adjust any Level 2 fair values. A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data. 16 In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments are excluded from the scope of disclosures. In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. Measurement alternative equity investments The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments, and plus or minus any changes resulting from observable price changes. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Notes receivable Notes receivable are recorded at amortized cost and are included in prepaid expenses and other receivables in the unaudited Consolidated Balance Sheets. The amortized cost is the amount at which a receivable is originated and adjusted for applicable accrued interest, accretion, or amortization of premium, discount, and net deferred fees or costs, collection of cash, writeoffs, foreign exchange, and fair value hedge accounting adjustments. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Accrued interest and dividends The carrying amount for accrued interest and dividends is a reasonable estimate of fair value due to the short-term maturity of these assets. The following table presents, by level, fixed maturity securities carried at estimated fair value as of June 30, 2026 and December 31, 2025: As of June 30, 2026 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ 1,785 $ 19,108 $ — $ 20,893 Corporate debt securities — 109,622 — 109,622 Total $ 1,785 $ 128,730 $ — $ 130,515 As of December 31, 2025 (in thousands) Level 1 Level 2 * Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions $ — $ 23,289 $ — $ 23,289 Corporate debt securities — 94,827 — 94,827 Total $ — $ 118,116 $ — $ 118,116 *Denotes estimated fair market value obtained from pricing services. 17 The following table presents, by level, estimated fair values of equity investments and other financial instruments as of June 30, 2026 and December 31, 2025: As of June 30, 2026 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 20,464 $ — $ — $ 20,464 Accrued interest and dividends 1,634 — — 1,634 Equity securities, at fair value: Common stocks 51,295 — — 51,295 Short-term investments: Money market funds and U.S. Treasury bills 51,726 — — 51,726 Total $ 125,119 $ — $ — $ 125,119 As of December 31, 2025 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 20,838 $ — $ — $ 20,838 Accrued interest and dividends 1,476 — — 1,476 Equity securities, at fair value: Common stocks 41,481 — — 41,481 Short-term investments: Money market funds and U.S. Treasury bills 68,763 — — 68,763 Total $ 132,558 $ — $ — $ 132,558 The Company did not hold any Level 3 category debt or marketable equity investment securities as of June 30, 2026 or December 31, 2025. There were no transfers into or out of Levels 1, 2 or 3 during the periods presented. To help ensure that estimated fair value determinations are consistent with GAAP, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. Certain measurement alternative equity investments and notes receivable are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be impaired, an impairment charge is recorded against such investment and reflected in the unaudited Consolidated Statements of Operations. There were two impairments for such investments for a total of $ 362 thousand made during the three- and six-month periods ended June 30, 2026. The Company impaired $ 144 thousand and $ 419 thousand for the three- and six-month periods ended June 30, 2025, respectively. The following table presents assets measured at fair value on a non-recurring basis as of June 30, 2026 and December 31, 2025: As of June 30, 2026 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 14,502 $ 14,502 Notes receivable — — 730 730 Total $ — $ — $ 15,232 $ 15,232 18 As of December 31, 2025 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Equity investments in unconsolidated affiliates, measurement alternative $ — $ — $ 7,863 $ 7,863 Notes receivable — — 891 891 Total $ — $ — $ 8,754 $ 8,754 Note 7 – Commitments and Contingencies Legal Proceedings – The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings is not expected to, in the aggregate, be material to the Company’s consolidated financial condition or operations. Regulation – The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or operations. Escrow and Trust Deposits – As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, escrowed funds received under escrow agreements, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying unaudited Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of these deposits. Like-Kind Exchanges Proceeds – In administering tax-deferred like-kind exchanges pursuant to § 1031 of the Internal Revenue Code, the Company’s wholly owned subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another wholly owned subsidiary of the Company, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through LLCs that are wholly owned subsidiaries of ITAC, holds property in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $ 329.1 million and $ 269.3 million as of June 30, 2026 and December 31, 2025, respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying unaudited Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenue includes earnings on these deposits; therefore, investment income is shown as non-title services rather than investment income. These like-kind exchange funds are primarily invested in money market funds and other short-term investments. Note 8 – Related Party Transactions The Company does business with, and has investments in, unconsolidated LLCs that are primarily title insurance agencies. The Company utilizes the equity method to account for its investment in these LLCs. The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (unaudited) (in thousands) As of June 30, 2026 As of December 31, 2025 Other investments $ 7,433 $ 8,184 Premium and fees receivable $ 2,925 $ 2,498 Financial Statement Classification, Consolidated Statements of Operations (unaudited) (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net premiums written $ 11,921 $ 9,585 $ 20,699 $ 15,258 Non-title services and other investment income $ 897 $ 647 $ 1,456 $ 1,262 Commissions to agents $ 6,407 $ 5,890 $ 11,203 $ 9,916 19 Note 9 – Intangible Assets, Goodwill and Title Plants Intangible Assets The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions are all Level 3 inputs. Management determined that no events or changes in circumstances occurred during the six-month periods ended June 30, 2026 and 2025 that would indicate the carrying amounts may not be recoverable, and therefore, determined that no identifiable intangible assets were impaired. During the six-month period ended June 30, 2026, a subsidiary of the Company acquired a title insurance agency operating in Florida. Identifiable intangible assets consist of the following: (in thousands) As of June 30, 2026 As of December 31, 2025 Referral relationships $ 14,907 $ 14,589 Non-compete agreements 1,966 1,827 Tradename 1,189 1,177 Total 18,062 17,593 Accumulated amortization ( 6,516 ) ( 5,946 ) Identifiable intangible assets, net $ 11,546 $ 11,647 The following table sets forth the estimated aggregate amortization expense, as of June 30, 2026, for each of the five succeeding fiscal years and thereafter, noting that the amounts presented in the tables above and below are not directly comparable due to the impact of unamortized assets: Year Ended (in thousands) 2026 $ 588 2027 1,132 2028 1,128 2029 1,125 2030 1,124 Thereafter 6,262 Total $ 11,359 Goodwill and Title Plants As of June 30, 2026, the Company recognized $ 9.8 million in goodwill and $ 1.6 million in title plants, net of impairments, as the result of title insurance agency acquisitions. The title plants are included with other assets in the unaudited Consolidated Balance Sheets. In accordance with FASB's ASC 350, the Company determined that no events or changes in circumstances occurred during the six-month periods ended June 30, 2026 and 2025 that would indicate the carrying amounts may not be recoverable, and therefore, determined that there were no goodwill or title plant impairments. 20 Note 10 – Accumulated Other Comprehensive Income The following table provides changes in the balances of each component of accumulated other comprehensive income, net of tax, for the three- and six-month periods ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at March 31, 2026 $ 242 $ 121 $ 363 Other comprehensive loss before calculations ( 200 ) ( 5 ) ( 205 ) Amounts reclassified from accumulated other comprehensive income 4 — 4 Net current-period other comprehensive loss ( 196 ) ( 5 ) ( 201 ) Ending balance $ 46 $ 116 $ 162 Three Months Ended June 30, 2025 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at March 31, 2025 $ 474 $ 111 $ 585 Other comprehensive income (loss) before calculations 244 ( 6 ) 238 Amounts reclassified from accumulated other comprehensive income ( 1 ) — ( 1 ) Net current-period other comprehensive income (loss) 243 ( 6 ) 237 Ending balance $ 717 $ 105 $ 822 Six Months Ended June 30, 2026 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at December 31, 2025 $ 992 $ 99 $ 1,091 Other comprehensive (loss) income before calculations ( 922 ) 17 ( 905 ) Amounts reclassified from accumulated other comprehensive income ( 24 ) — ( 24 ) Net current-period other comprehensive (loss) income ( 946 ) 17 ( 929 ) Ending balance $ 46 $ 116 $ 162 Six Months Ended June 30, 2025 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at December 31, 2024 $ 300 $ 55 $ 355 Other comprehensive income before calculations 421 50 471 Amounts reclassified from accumulated other comprehensive income ( 4 ) — ( 4 ) Net current-period other comprehensive income 417 50 467 Ending balance $ 717 $ 105 $ 822 21 The following table provides significant amounts reclassified out of each component of accumulated other comprehensive income for the three- and six-month periods ended June 30, 2026 and 2025: Three Months Ended June 30, 2026 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized loss on investments $ ( 4 ) Write-down of securities — Total $ ( 4 ) Net investment gains Tax — Provision for income taxes Net of Tax $ ( 4 ) Reclassifications for the period $ ( 4 ) Three Months Ended June 30, 2025 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized gain on investments $ 2 Write-down of securities — Total $ 2 Net investment gains Tax ( 1 ) Provision for income taxes Net of Tax $ 1 Reclassifications for the period $ 1 Six Months Ended June 30, 2026 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized gain on investments $ 30 Write-down of securities — Total $ 30 Net investment gains Tax ( 6 ) Provision for income taxes Net of Tax $ 24 Reclassifications for the period $ 24 22 Six Months Ended June 30, 2025 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Operations Unrealized gains and losses on available-for-sale securities: Net realized gain on investments $ 5 Write-down of securities — Total $ 5 Net investment gains Tax ( 1 ) Provision for income taxes Net of Tax $ 4 Reclassifications for the period $ 4 Note 11 – Revenue from Contracts with Customers ASC 606, Revenue from Contracts with Customers , requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance does not apply to revenue associated with insurance contracts (including title insurance policies), financial instruments and lease contracts; and therefore is primarily applicable to the following Company revenue categories. Escrow and other title-related fees: The Company’s title segment recognizes commission revenue and fees related to items such as searches, settlements, commitments and other ancillary services. Escrow and other title-related fees are recognized as revenue at the time of the related transactions as the earnings process, or performance obligation, is then considered to be complete. Non-title services: Through various subsidiaries, the Company offers management services, tax-deferred real property exchange services, investment management and trust services. Nonrefundable exchange fees are recognized as revenue upon receipt of the funds, which is at the time of closing of the initial sale of property. All other non-title service fees are recognized as revenue as performance obligations are completed. Other: The Company occasionally recognizes revenue from other miscellaneous contracts which can include, but are not limited to, seminar and education registration fees and software licensing contracts. These revenue streams are deemed immaterial to the operations of the Company, and revenue is recognized when, or as, performance obligations are completed. The following table provides a breakdown of the Company’s revenue by major business activity: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Revenue from contracts with customers: Escrow and other title-related fees $ 5,968 $ 5,694 $ 11,008 $ 9,586 Non-title services 5,105 5,477 9,474 10,086 Total revenue from contracts with customers 11,073 11,171 20,482 19,672 Other sources of revenue: Net premiums written 67,542 54,496 118,488 100,841 Investment-related revenue 7,734 5,074 11,210 6,644 Other 154 2,908 336 3,057 Total revenues $ 86,503 $ 73,649 $ 150,516 $ 130,214 23 Note 12 – Leases The Company enters into lease agreements that are primarily used for office space. These leases are accounted for as operating leases, with lease expense recognized on a straight-line basis over the term of the lease. The Company occasionally assumes equipment lease agreements through business acquisitions. These leases are accounted for as finance leases. Included in a portion of the Company's current leases are options to extend or cancel the lease term. The exercise of such options is solely at the Company's discretion. The lease liability recorded in the unaudited Consolidated Balance Sheets includes lease payments related to options to extend or cancel the lease term if the Company determined at the inception date that the lease was expected to be renewed or extended. The Company, in determining the present value of lease payments, utilized the average rate over a 10-year term based upon the Moody's seasoned Aaa corporate bond yields, as explicit rates of interest were not readily determinable in the lease contracts. The Company does not carry debt; thus, no incremental borrowing rate was available to the Company. Lease expense is included in office and technology expenses in the unaudited Consolidated Statements of Operations. Information regarding the Company’s leases is as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Operating leases $ 553 $ 491 $ 1,087 $ 1,158 Finance leases: Amortization of lease assets 36 145 84 207 Interest on lease liabilities 4 — 8 — Lease expense $ 593 $ 636 $ 1,179 $ 1,365 Sub-lease income ( 22 ) ( 22 ) ( 43 ) ( 65 ) Lease cost $ 571 $ 614 $ 1,136 $ 1,300 Components of the lease liability presented on the unaudited Consolidated Balance Sheets are as follows: (in thousands) As of June 30, 2026 As of December 31, 2025 Current: Operating lease liabilities $ 1,776 $ 1,548 Finance lease liabilities 154 130 Non-current: Operating lease liabilities 6,588 6,116 Finance lease liabilities 199 256 Total lease liabilities $ 8,717 $ 8,050 The future minimum lease payments for leases that have initial or remaining noncancelable lease terms in excess of one year as of June 30, 2026, are summarized as follows: Year Ended (in thousands) Operating Leases Finance Leases Total 2026 $ 1,052 $ 84 $ 1,136 2027 1,862 153 2,015 2028 1,432 98 1,530 2029 1,347 29 1,376 2030 1,242 9 1,251 Thereafter 2,502 — 2,502 Total undiscounted payments $ 9,437 $ 373 $ 9,810 Less: present value adjustment ( 1,074 ) ( 19 ) ( 1,093 ) Lease liabilities $ 8,363 $ 354 $ 8,717 24 Supplemental lease information is as follows: As of June 30, 2026 As of December 31, 2025 Weighted average remaining lease term (years) Operating leases 5.88 6.38 Finance leases 2.51 2.65 Weighted average discount rate Operating leases 4.0 % 4.1 % Finance leases 4.5 % 4.5 % The Company does not have any material pending operating or financing lease agreements that become effective in future periods. 25